Rejected for loan for debt consilidation purposes, dont know what to do?

Hax

byrnedolly wrote: »

Two years ago I was able to borrow £7000 with an annual salary of only £12000. I have repayed this loan now, but found myself needing another one, for exactly the same purpose as you, paying off credit cards. I only wanted £5000 but I got rejected. They said I had too many committments. Funny how they didn't really care about that 2 years ago.

It sounds to me like when you borrowed the £7000 all you did was move the bulk of the debt to your credit cards - which kind of hints of you struggling financially. So, maybe the banks have got it right?

geoffky

robbing peter to pay paul is kidding yourself...the only way out is reduce your spending and live the lifestyle your wages dictate...far too many people think that something will pop up to get them out of a hole and many got out of jail using mortgage equity withdrawal but those days are over...time to pay up as all options have disappeared unless you go br.

Clive_Woody

Rarchy wrote: »

I need a loan of around £8400. I know people will say, I dont need but want, but seeing as it is for debt consilidation purposes in my mind I do need it.

I have around £3k on credit card (which was one large spend, but only been paying the minimum mostly), £1000 into my overdraft and more importantly a friend lent me £4800 in order to pay off other debt. One of the agreements was if she needed it back I would get a loan. I applied for Santander online as they are my bank and had a decent rate for that range, but was told today its been declined.

I am not sure why I have been rejected as I spoke to them on the phone and they couldnt tell me but said it would say in the letter.

As my friend is now looking to buy property she does need this money back, and therefore I need to find it from somewhere, plus the extra I am paying huge interest (19.5%) on - I guess was naive to think it would be straight forward. I thought about getting a smaller loan for £5000, and also transfering my balance on my cc to pay that off, but then it means two payments each month which I guess is harder to pay off than one?

I am on £22,500, renting, apart from cc and overdraft no other financial commitments. I can afford up to £200 a month now as my salary just increasesd (was £20k before) which would have covered the loan I was looking for over 5 years.

Now that it has gone onto my credit history that I have been rejected I am not sure what to do?

Basically I realise I have been overspending and would like to try to find a way to pay it back so I can reorganise and not get in debt over my eyeballs, but I feel there is no way for me to do this!!

If anyone can offer any advice I would be very grateful

You currently have debt of £8400, you want to borrow an additional £8400, giving a total debt of £16,800, which on your salary is too high a ratio of debt to earnings (usually they won't allow total debt of more than 50% of earnings). I appreciate you want this loan to clear debts but the lender only has your word for this and you may well go off and spend this new loan effectively doubling your debt.

You might get a smaller loan, but you really need to start reducing your overdraft and other debts and not ignoring them.