Advice on Loan Needed Please

0writer

Hi,

I have a total of £22,000 debt which is spread over 4 credit cards. I am really struggling with the total monthly outgoing for the cards (£500) and considering most of it is interest is really depressing sometimes.

After reading some articles from Martin I think the best thing would be to consolidate as I have no savings and have tried as many car boots etc as I can to make some extra money. I am in the process of getting a second job (evenings and weekends) but I think by getting a loan at least I can start repaying instead of just paying interest. I have conducted a credit report which came back as Poor.

Could anyone advise would it be better to speak to my Bank or Mortgage Provider to see about a loan rather than a company that might base it on bad information?

Also is it going to be possible to get a unsecured loan for that amount or is everyone going to want a piece of my home?

Many Thanks,

CLAPTON

initially it is better to address the causes of the debts rather than just looking at the interest rates.

if you wish to post a statement of affairs here i.e. full details of income, details of all your spending and full details of debts (debt amount, minimun monthly payment and APRs) and if renting or buying , if buying then how much is the house worth and how much the mortgage, plus a little about your situation, OH, children etc.

as far as the debts are concerned, without seeing the details of debts its no really possible to advice but generally consolidated loans are to be avoided until the causes of the debts are addressed. in any event if your credit rating is poor, you will be paying a high rate of interest on a loan.

0writer

Thanks Clapton. Ok here we go.....

I am in fulltime employment current take home is £400 plus expenses and divdend on "good months".

My spending is limited to filling the car with fuel and household food. We have one child not even aged 1yrs yet.

We currently own our home (mortgage) which is £121,000 although the property is value at £160,000 as of 2 weeks ago.

Virgin CC - (£5120) - £67.00 per month
Egg CC - (£5750) - £112.77 per month
HSBC CC - (£6500) - £196.00 per month
Morgan Stanley CC - (£4265) - £87.00 per month

About 2 years ago I left my employeer and started my own company. I operate this with another employee. At the time I did not get any funding and put all the cash in myself. Pretty much for the first few months there was nothing then things slowly picked up. Although my situation at the time was good and money was saved up to do this I did not forsee some of the bad months. Gradually these got worse and then things picked up again but by this time the debt had grown. Now although things are ok and still continually growing it is not at the rate that my debts need paying. I have put a deadline on when to call it a day but for the moment am looking at a second job and need to take control of things now as it has been left too long obviously resulting in this mess.

Any advice appriciated.

lynzpower

hi there

is this right that your business only pays you approx 100 per week?? :eek: No one can live on that, thats what the minimum wage is for, so no wonder you are struggling

I suggest you do a FULL soa with all the details provided in southern scousers first time posters, thats ALL your incomeings outgoings and aprs, what you spend everywhere including your business.

We will be able to help more then

Lynz

Dolly_Smith

you don't say if your partner works - is there money coming in from her? You don't have a mortgage, which is usually the highest payment on anyone's list so you should be able to manage your debts with a double income. £400 pm seems very little though - is that right?

0writer

Thanks Lynz I will do.

Dolly, we do have a mortgage sorry for not being clearer. My partner does work but is currently still on maternity leave. Her current income is £400 which pays towards the mortgage and weekly food bill. £400 pm is correct.

whatatwit

lynzpower wrote:

hi there

is this right that your business only pays you approx 100 per week?? :eek: No one can live on that, thats what the minimum wage is for, so no wonder you are struggling



Lynz

No such thing as a minimum wage when you are self employed.
Do you get any tax credits?

lynzpower

yes I know you dont get min wage when you are self employed, but my feeling is is that if the business doenst pay its staff ( ie the owner) min wage, then it cant be performing well. However, its acceptable, I know, to do this in the early days of a business - this is the sacrifice

vij1366

sorry to hear this,but with a poor credit score your chances are very slim unless you goto a these laon shark companys.the best thing to do is what i ahve done and that is to speak to the credit card comapnys and see if they can lower the rate u pay.your bank i would say would be your best bet as they will look favourablre if the accounts has been run well.
other wise head down to cab and see if they can help.
good luck