At my wits end with Loan companies

t508

themull has it.

Open another current account. sort out your budget. dont ever hav an od again. pay a set amount into the od every motnh and then work like hell to pay as much extra as you can.

Then start a savings account and buy what you want for cash not credit.

Kirstyc_2

opinions4u wrote: »

If your overdraft is less than £2,500 you should only be paying £1 a day. This is cheaper than most personal loan rates.

So how much do you really owe?.

My Overdraft is £2590, when it is below £2500 as it is most of the time, I pay £1 above that I pay £2.

opinions4u wrote: »

And why do you think a loan will make you better off??

Because it will give me structure and a simple payment plan to stick to which I find helpful. The same reason people have Debt Consolisdation loans I presume.

opinions4u wrote: »

Usually's not good enough. You're abusing your account and as a result they don't want to lend you any more. Sooner or later they will call in the overdraft.

I would suggest you don't make statements of that nature without knowing facts, since 2008 I have exceeded my overdraft TWICE. Once by a penny which my bank agreed was a simple oversight and due to it being the first time I'd ever gone over my limit they cancelled any charges, and once a by a few pounds when my car insurance company took my direct debit two days early.

opinions4u wrote: »

Go on, tell the truth. How many credit searches for payday loan companies have you had?

Two. Both accounts were settled by the promise date (and in one case before) and show on my credit file as settled agreements. In total, at 28 years old there are only 4 previous searches on my credit file, one of which is for car insurance and so is pretty much unavoidable unless I intend to drive around without insurance.

Now a question for you, is this REALLY of any relevance to your answer or do you take this sort of tone with everyone who comes on here asking for advice?

opinions4u wrote: »

Time at address = not long

I stated pretty clearly that I move about due to work, This is part of my job and not something that is likely to change any time soon.

opinions4u wrote: »

Credit searches by catalogues and loan companies = a few

another ridiculous assumption, I have ONE account with littlewoods that I have had for a number of years, again all payments are made on time and up to date, and I ALWAYS stay within my spend limit.

opinions4u wrote: »

Existing debt exceeds £2,500 and often goes outside agreed limit = don't want to lend you more

Yet more rude assumptions about my ability to manage my money, Existing debt £2590 and is managed within the conditions of my account. If getting into debt for the merry hell of it was my aim I could happily increase my overdraft to the £5000 PRE APPROVED limit my bank offer me, hence the question why do they offer my thousands of pounds in overdraft form but not a small personal loan to bring my balance to Zero and allow me to close my overdraft facility completely.

opinions4u wrote: »

- Get your balance below £2,500.
- NEVER exceed your overdraft limit again.
- Visit the Debt-Free Wannabe forum and work out how to reduce your outgoings and manage your overdraft down. A loan isn't the solution to the problem. Earning more and/or spending less is.

Thanks again for this stirling advice, a number of people have offered helpful pointers for which I am very grateful, I'm presuming by your tone and "holier than thou" attitude that you yourself have a credit score of 999 points with no defaults or missed payments EVER and you have never relied on credit for anything, including to buy a house or a new car. My problem is NOT that I have managed my money poorly, or that I have no ability to stick to payments like you seem to assume, it is simply that I feel taking a loan to pay my overdraft would give me a simple predictable payment each month which I could budget for, whereas at the moment depending on how much my overdraft is used, the charges vary from month to month.

Now, unless you have something worthwhile other than ill informed, wildly presumptuous, judgemental comments to make I'd appreciate if you could keep your opinions4u to yourself in future.

drbesty

You asked for opinions, you got his opinion, whether you like it or not is another matter. To me it sounds like you are struggling, why would they give you a loan when you're nearly always at your OD limit, where would the money to pay the loan come from?

Apples2

Kirstyc wrote: »

that you yourself have a credit score of 999 points

I've not read all of this lot but I will add to the party, a score of 999 means diddly squat.
The people giving you a score do not lend money so who cares what they rate you at? Certainly lenders don't give a hoot, they have their own scoring mechanism which may give someone with 999 a terrible score, another person with 999 a fantastic score.

Loans are contractually agreed over a period of time, an overdraft is a temporary facility, one which can be cancelled with no notice by the bank, the can do this (and have done).

An overdraft should never be seen as a free playground where you don't have to structure your finances.
You only pay more fees on your overdraft if you use more of it, this is already within your control.

You are doing the right thing by trying to get out of it (even with a loan) but as your overdraft deminishes, so does your overdraft fees, a loan is fixed so it could work out cheaper to work on reducing the overdraft.

opinions4u

Kirstyc wrote: »

My Overdraft is £2590, when it is below £2500 as it is most of the time, I pay £1 above that I pay £2.

Ok, but you did state in the post that your overdraft limit offered was £2,500. So you must have increased it subsequently. You also said you were paying £60 a month in charges, which suggested that you were often more than £2,500 overdrawn.

Because it will give me structure and a simple payment plan to stick to which I find helpful. The same reason people have Debt Consolisdation loans I presume.

Indeed. But as you are becoming aware, debt consolidation loans are considered higher risk by lenders and they are less willing to take them on.

I would suggest you don't make statements of that nature without knowing facts, since 2008 I have exceeded my overdraft TWICE. Once by a penny which my bank agreed was a simple oversight and due to it being the first time I'd ever gone over my limit they cancelled any charges, and once a by a few pounds when my car insurance company took my direct debit two days early.

I'm sorry for upsetting you. Yes, it was an assumption. But it was one based on the figures you provided.

Two. Both accounts were settled by the promise date (and in one case before) and show on my credit file as settled agreements. In total, at 28 years old there are only 4 previous searches on my credit file, one of which is for car insurance and so is pretty much unavoidable unless I intend to drive around without insurance.

Okay. If you pay car insurance in full you won't be credit searched.

Now a question for you, is this REALLY of any relevance to your answer or do you take this sort of tone with everyone who comes on here asking for advice?

The number of credit searches is completely relevant to the likelihood of being accepted for credit. The more searches you have, the less likely you are to be accepted. You complain about my assumptions, you complain about me trying to ascertain facts to help you.

I stated pretty clearly that I move about due to work, This is part of my job and not something that is likely to change any time soon.

You did. But a key driver in any credit scoring system is address stability. If you've been at current address for a few months you are less likely to pass a credit score with a lender than if you've been at the same address for a few years.

another ridiculous assumption, I have ONE account with littlewoods that I have had for a number of years, again all payments are made on time and up to date, and I ALWAYS stay within my spend limit.

Fair enough. Previously, in relation to the current account, you had said "I usually keep within its limit". I'm sorry, but usually is not good enough. 1p or £100 is not good enough. Always within limit is good enough. I went off the information you posted including "even when I went over my limit by 1 penny they charged me £5 a day for several days".

Yet more rude assumptions about my ability to manage my money, Existing debt £2590 and is managed within the conditions of my account. If getting into debt for the merry hell of it was my aim I could happily increase my overdraft to the £5000 PRE APPROVED limit my bank offer me, hence the question why do they offer my thousands of pounds in overdraft form but not a small personal loan to bring my balance to Zero and allow me to close my overdraft facility completely.

Not rude. Based entirely on your first post where you stated "I was PRE APPROVED for an overdraft of £2500". The size of charges stated suggested very strongly that you exceeded the £2,500 limit you had already referred to. Paying £2 a day for being £90 over the £2,500 threshold for £1 a day charging strikes me as poor budgeting. What do you think?

Thanks again for this stirling advice, a number of people have offered helpful pointers for which I am very grateful, I'm presuming by your tone and "holier than thou" attitude that you yourself have a credit score of 999

I have no idea what Experian or other companies score me at, because I've never paid them money to find out. They don't lend. Their number is meaningless. Spending money to obtain that number is wasteful and would be better spent reducing your overdraft. If you are currently paying £60 a month, but only ever go £2,590 overdrawn, manage your debt down by £91 and save £30 a month.

points with no defaults or missed payments EVER and you have never relied on credit for anything, including to buy a house or a new car.

I've had loans and have credit cards and a mortgage. But I have never missed a payment for anything.

Now, unless you have something worthwhile other than ill informed, wildly presumptuous, judgemental comments to make I'd appreciate if you could keep your opinions4u to yourself in future.

I asked for clarity on the number of searches. You have provided this. Thank you. The other elements of my post and suggestions were taken from the information you provided. It seems that was incomplete.

However, we have now established that your number of credit searches isn't particularly high. So that's a good thing.

What you do have is:

- a problem with address stability, which will always have a negative impact on credit scoring systems.

- an overdraft which appears to be increasing slightly, certainly not reducing. One fear of providing a personal loan is that it would appear that you don't have available income to afford the payments on a loan as your overdraft isn't reducing.

- an overdraft that is a whisker over £2,500. Shave off that whisker and save £1 a day. That is absolutely your first priority.

Things to focus on:

- whatever your overdraft limit may be (£2,500, £2,600 or £5,000) always operate under the limit. Don't ever go over the agreed limit.

- look for ways to spend less / earn more and set yourself a month end debt target that you won't exceed. e.g £2,590 this month. £2,4999 next month. £2,450 the month after. £2,400 the month after.

- get on the electoral register asap wherever you're living.

All this will increase the likelihood of being accepted for a loan in future.

Again, I'm sorry if you don't like my comments. Some of the information you originally provided has been contradicted by your latest post. I can only go off the information you have given. If you choose to change the story later on that's up to you.

As it is, depsite upsetting you, the suggestions I made were practical and, if followed, give you more chance of obtaining the loan you want in future.

Kirstyc_2

drbesty wrote: »

You asked for opinions, you got his opinion, whether you like it or not is another matter. To me it sounds like you are struggling, why would they give you a loan when you're nearly always at your OD limit, where would the money to pay the loan come from?

I asked for ADVICE which I have been given, from people on here who are kind enough to offer pointers without making assumptions.

Tupperware_Queen

I would advise that you get another 2 or 3 accounts

Get your wages paid into one account, this is your main one.

Calculate your monthly direct debits, standing orders etc and make an estimation for annual costs, such as car tax etc.

For the annual amounts set up a standing order to go monthly from the main account into a savings account. This will then build up, and will cover those annual bills.

When you have calculated how much you have left after paying all dd's, so's (including the one to your savings account) transfer that amount (a bit less if you want to leave a small buffer in your main account) into a third account - this should be one with a cashcard/debit card. This is then the monthly amount you have for spending....food, petrol and anything else. Out of this amount, transfer an amount you feel appropriate back into the account with the overdraft.

The other way to do this, which can be used if you are worried about the overdraft being withdrawn if wages don't go in, is to continue to get your wages paid in there, and transfer out the moneys as described above.


hope that helps.....it has worked for both my sisters.

good luck

eschaton

Kirstyc wrote: »

I asked for ADVICE which I have been given, from people on here who are kind enough to offer pointers without making assumptions.

opinions4u has given you a lot of good advice but you just don't like it.

If you can't control your spending then don't expect a loan to be any easier to pay back.

Start budgeting as off now and you will reap the benefits.

I expect I have a very good credit rating but also don't really know as paying to find out my credit rating isn,'t making good use of my money.

beanys

What about selling your car if you still have it and buying a cheaper one and using any profits to pay off your debt

Clive_Woody

Not sure if it has been mentioned already as I didn't read the whole thread, but do you really need a fee paying current account? There are plenty of free accounts out there. Unless you use whatever perks this account offers my first suggestion would be to look at removing the fee paying elements of your current account (assuming this can be done with an outstanding OD).