Want to consolidate debt but cant get credit...

vmulvihill

Hi,


I am trying to consolidate all of my credit card debt. They seem to eat up my money. I went to the bank to get a loan to consolidate the debt and could easily make the monthly repayment as it would be less than all of my credit cards. I have payed more than the minimum for the past year. Two of the cards are closed and just the debt remains. However i have been refused a debt consolidation loan and have been told to appeal. What else can i do. Help.


I have pasted below a copy of my SOA. I have filled it out as accurately as i think.

Really need to consolidate this debt but feel like the banks are not willing to help.

Thanks VMulvihill



Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1253
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1253

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 24
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Car finance............................. 109
Total monthly expenses.................. 985


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
RBS mastercard.................156.71....5.........17.95
VISA one.......................3679.92...70........15.9
current credit card............1400......22........0
Total unsecured debts..........5236.63...97........-


Monthly Budget Summary
Total monthly income.................... 1,253
Expenses (including HP & secured debts). 985
Available for debt repayments........... 268
Monthly UNsecured debt repayments....... 97
Amount left after debt repayments....... 171

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,236.63
Net Assets.............................. -5,236.63

nearlyrich

Hello and welcome to MSE, you have come to the right place to get rid of the debt once and for all, snowballing will help to get rid of the higher interest debt first. Two things I noticed from your SOA is you have no assets but you pay for a car does it have a value? and do you have £171 left after paying for everything?

Most of us would not recommend consolidating debt as it frees up cards for you to spend again and you are not getting rid of the debt .....

dreamdreamer

To be honest your debt level isn't high enough to get the best APRs on a loan anyway, they start at around £7-£7.5k. You probably wouldn't find a loan for much less than the APR of your main credit card anyway.

krycek985

A bit off track but whyis your electric bill £100 ?

Seems a bit steep as I live in a two bed flat with my girlfriend and we pay £25 a month.

Mayby a few quid saving for a 10 min moan on the phone.

vmulvihill

My car is worth probably around £4000, and i have to pay this off over 5 years at £109 a month. Although the SOA calculator says i have £171 left after everything that never seems so be the case, maybe i havent added everything to it exactly but am at the bottom of my overdraft or over it every month getting charges.

vmulvihill

i pay £100 for bills to landlord for everything as apart of agreement for gas electirc phone, just got lazy filling out form.

lvm

Whether you get offered a loan or not isn't all to do with if you can afford it or not. They will want to know if you will pay it, rather that can you pay it.

It's maybe worth checking out your credit report to see if there's any long forgotten debt or unpaid phone bill, catalogue account or similar.

If you register for a 30 days free trial with Experian they'll confirm if you're on the Electoral Register, how much of your available debt you are using etc.

vmulvihill

Already did that and it gave me my credit rating for last year. They wanted me to pay more money to get an up to date rating and i didnt want to pay this.

nearlyrich

vmulvihill wrote: »

My car is worth probably around £4000, and i have to pay this off over 5 years at £109 a month. Although the SOA calculator says i have £171 left after everything that never seems so be the case, maybe i havent added everything to it exactly but am at the bottom of my overdraft or over it every month getting charges.

OK so you don't have the money left so you must be spending it somewhere, could you do a spending diary see if you can track the missing cash? And do that snowball it could make a massive difference to how much this debt costs you;)

vmulvihill

nearlyrich wrote: »

OK so you don't have the money left so you must be spending it somewhere, could you do a spending diary see if you can track the missing cash? And do that snowball it could make a massive difference to how much this debt costs you;)

Thanks, just did the snowball, this is actually really helpful! Will probably try and follow this rather than commit to another loan! Never heard of this before but is a brilliant tool!

VMulvihill