60k Consolidation Loan

the_great_escape

Any advice please

Currently we have almost exactly the same coming in as going out, in total we have c40k card debt and 10k personal loan.

I can just about afford to service it all, but with zero to spare, and this is making minimum payments so not reducing the cards.

Is there a bank / other financial institution that will lend 50k over 10 years?

We don't have any equity in the house , although we are home owners, credit rating is OK as have never missed a payment on anything, but I have no more ADDITIONAL credit - so I need a bank or someone to effectively swap the debt and the. I can bin the cards, get my head down and we are out of it in 10 years with everyone fully paid up.

Excluding the card / loan debts above our total outgoings are c2.5k and we have 5k coming in, I want find someone who will take 1k per month so we have some left to start paying the mortgage down.

Any advice on who to talk to?

Thanks

grey_lady

If the interest rate on the mortgage is lower than the interest rate on the cards, or even a loan then why pay the mortgage down?

It may be that your best option is to reassess your monthly outgoings, make savings and use that money to snowball your debts, you could also try applying for a balance transfer onto cheaper rates or increase your income.

But swapping your debt for more expensive debt...

epsilondraconis

Not sure about where you would go for the consolidation loan. Your bank is normally a good start; however they may not be willing given your circumstances.

The following article is worth a read. Towards the end of it there are some telephone numbers for organisations that provide free debt advice / counselling. It may be worth contacting one of those.

http://www.moneysavingexpert.com/loans/debt-help-plan?dd

Also, it may be worthwhile producing a statement of affairs (a list of your income and outgoings) and posting it on the debt free wannabe board. You'll get advice on there on how to reduce your outgoings so you can hopefully pay more towards your debt.

http://www.makesenseofcards.co.uk/soacalc.html

The debt snowball calculator is also a useful tool to ensure you pay off the most expensive debt first.

http://www.makesenseofcards.com/snowcalc.html

I'm sure others will be along anyway with words of wisdom...

Good luck

BackOnTrack

the_great_escape wrote: »

Any advice please

Currently we have almost exactly the same coming in as going out, in total we have c40k card debt and 10k personal loan.

I can just about afford to service it all, but with zero to spare, and this is making minimum payments so not reducing the cards.

Is there a bank / other financial institution that will lend 50k over 10 years?

We don't have any equity in the house , although we are home owners, credit rating is OK as have never missed a payment on anything, but I have no more ADDITIONAL credit - so I need a bank or someone to effectively swap the debt and the. I can bin the cards, get my head down and we are out of it in 10 years with everyone fully paid up.

Excluding the card / loan debts above our total outgoings are c2.5k and we have 5k coming in, I want find someone who will take 1k per month so we have some left to start paying the mortgage down.

Any advice on who to talk to?

Thanks

I think you are going to have difficulty. My wife and I are in a similar position, if slightly healthier. She has 30k unsecured debt and and mortgage for about 25% of the value in the house. She has an unblemished credit file all payments to time etc. and she was declined for an increase in the mortgage to 40% of the house value, the reason for decline was the credit she had available to her.

I have a settled default from 2006 on my credit report so we keep our affairs seperate.

Not getting the mortgage was great for us though. It made us realise we were just looking for an easy way out. So we now have a much better grasp on what we are spending and have reduced our spending significantly. We are fortunate that we both have good jobs and may even be able to clear the debt this year if we really tighten our belts.

It might be worth it to really examine what you spend and see where you can save. If you can reduce your spending a bit then just pushg everything to the debt. If you can't identify much in way of savings then it might be time to look at perhaps getting a part time job somewhere or cash in some assets.

iolanthe07

£25K is generally the limit for unsecured personal loans.

Brock_and_Roll

On the basis of the information provided the chances of you getting a cosolidation loan for any amount never mind £50k are absolutely minimal.