Advice for Partner considering consolidation

desperate+determined

Hi,

Really hoping for some help / advice for my boyfriend.

He made a mistake by not trading in his car when buying another cheaper one (thought he'd could recoup more for car by selling privately)

So debts are:
Credit Card 1: £1000
Credit Card 2: £2000
Personal Loan (new car): £8500
HPI (old car): £11500 to settle.

Total owed: £23K (paying 4 seperate payments in excess £600pcm)

Boyfriend is employed full time with wage between £22 - £28K

Want to consolidate so only one payment pcm and also because he found buyer for old car on HPI but sale price won't clear HPI (and buyer won't complete until HPI clear - which is only understandable)

Checked credit report and showing as fair in top end 800's

Any advice gratefully received as potential new buyer for old car would like to complete sale by thursday. Do you think he's a good chance at a consolidation loan?

Thanks for reading, eagerly await a response.

fozmcfc

Definately not. Firstly no one is going to lend £23k to someone who earns 22 - 28k.

In addition, when consolidating debts the lender will look at the amount owed already + the loan amount. I.E. 46K assuming he wants a £23k loan.

That is because they have no guarantee that the 23k won't be spent on something else and therefore £46k will be outstanding again against a maximum of 28k earning.

Hopefully someone else can give you advice regarding the car etc... but as for the loan it just isn't going to happen.

yorkshire-lad

you cannot sell the car because its on HP, its not yours to sell.

how long has he been paying the old car? if its over 50% of the term he can VT and hand the car back to the finance company.

i agree with foz, he will not a get another loan to pay off his other loans.

desperate+determined

He hasn't owned the car long enough to hand back, only 12 months.

He knows he can't sell until HP cleared, he only needs to find £2K to add to the proposed sale amount. Which would then clear th £11.5K HP.

Any suggestions?