Advice Please.....

harrybass

Hi I am a current homeowner of 4 years, but very little, if any equity. I have unsecured debt of around 24k, and paying approx £800 per month for this. 9k of this debt is on a credit card, and not going down. the rest is spread over 3 loans.

What im looking for is a company where an individual will look at my circumstances, instead of a computer.

I have been declined a loan recently, and told it was due to the amount of unsecured debt i held.

What im after is for 1 lender to pay off all my unsecured debt, so i can get it under control. I have never missed any payments, and can show my affordability, as im already paying 800 perr month now.

Any ideas will be appreciated, Thanks

Peelerfart

What you are after harry is a consolidation loan which is very,very difficult to get these days.

The banks think people are going to get the money and spend it on a holiday or such like,
and not pay their debts with it.

I don't know of any organisation who offer such a loan but maybe someone can come up with a name.

Personally I doubt it, but good luck .

PF

MFWannabe

My suggestion would be to get on to the Debt free wannabe board and post an soa using www.makesenseofcards.com and the lovely people on there will give you some great advice. We need more details; such as what is your income? If your debts are almost as much as your income then you won't get any new borrowing offered to you from a 'normal' lender

harrybass

Thanks fo replying.

The debt is all joint with my wife.

we earn jointly about 55k basic, not including any OT i get or her annual discretionary bonus.

Just feel like im banging m head against a brick wall. I can prove affordability due to us paying 800 per month in total for our unsecured debt, its just a case of being able to get a human to make a lending decision instead of a banks/lenders computer.:mad:

ryanm198

Unfortunately no lenders use the 'personal' decision anymore its all computers and statistics.

They will look at your debt and just see another loan application as a continuation of that debt whether your intentions are to pay the outstanding balance or not.

For instance 10k worth of debt + 10k new loan = 20K Debt

Even though realistically it will still be 10K as your going to pay the old debts off, the banks cant hold you to this which I suppose is fair enough, think the worse of customers is probably right in this day and age.

Did you try your loan though your own bank? Or a finance company. Your own bank might see you differently as they can asses how you use your money

And the biggest thing is salary, if you dont earn enough then there is no chance of getting a loan of that size as in their eyes your looking at almost 50K in total debt. Are you looking for a homeowner loan or another unsecured loan?

harrybass

we have very little equity so probably an unsecured loan.

ryanm198

I think you might struggle to get that amount they will usually lend up to 50% of your wage I think (although someone more knowledgeable might be able to confirm this) so for 50K total debt you'd need to be earning 100k combined a year on an unsecured.

Apples2

The banks spent years throwing money at people wanting to consolidate,
"If I only had a £20k loan I would only have one outgoing and all my debts will be cleared so I'll be sorted" type applicants.

Fast forward and that £20k has been piled back up on the cards and they also have a £20k loan to repay = DCA/DMP/Bankrupt/unenforceable/all the banks fault etc. etc.

This is why they seem reluctant to lend for debt clearance, history proves it doesn't clear anything, it just makes things worse later.


You're better off addressing why you spent £24k more than you earn and address that.

xkittyxcatx

Have you tried to get a consolidation loan with whoever you have the largest loan with already? They process the payment normally, meaning they can see you are using it for consolidation, which may make it a bit easier.

With 24k unsecured you will find it hard, as the maximum is usually £25k.