Poor credit rating but need a loan - any suggestions?

derval

We are a couple in our late 40s. We realised nearly three years ago that, when the credit card merry go round stopped, we were living beyond our means by about £300 per month and resolved to do something about it. We got rid of credit cards and organised a loan to consolidate some debts and began to budget accordingly. However this left no spare money and when our sons started university we had to borrow some more to support them.
We then had some car and house repairs which were costly.
We then started to fall behind with credit card and loan payments with the result that our credit rating has plummeted so much that even the bottom end lenders won't look at us. I have tried Ocean and similar plus all the expensive 'bad credit' loan companies and no one will touch us. We are now using payday type loans and juggling credit card repayments.
One positive side of all of this that we have cut our non essential expenditure right down but we need a loan to get ourselves straight. I calculate that a loan of £4500 would allow us to straighten out the outstanding issues and leave us with a disposable income (after bills, all loan and credit card payments and the mortgage) of nearly £1400.
Does anyone have any suggestions about where we might find a loan?
I want to repay my debts and am not interested in IVAs or similar.
Thanks for reading.

SarahVFF

You could try Zopa listings - zopa.co.uk, although I am not sure on their minimum criteria. Also, if you wanted some more general advice try getrichslowly.org, it is a great website written by someone who was in a lot of debt and got out of it.

CLAPTON

from the way you tell it you have absolutely no chance of a loan at less that 2000% APR and then only a few hundred pounds

go over to the debt free wannabe board and post up an SOA
http://www.makesenseofcards.com/soacalc.html

once the full financial facts are available then it will be possible to give some advice.

barbarawright

I'm sure this isn't what you're actually doing, but your post gives the impression that you want to just shuffle around your debts rather than actually pay them off. How will you pay a new loan if you can't meet your current expenses? Clapton's advice is excellent.

KimYeovil

A disposable income of £1400 after bills and housing and repayments? After??? Why do you need a loan in the first place? Your sums do not add up. You are missing something out. Why can't you either live on £400 and pay back £1000 for five months or live on £1000 and pay back £400 for twelve months?

corbyboy

Sorry, you do not need a loan, you need to sort yourself out.

You post is full of contradictions. You say you have a disposable income of £1400 but you can't keep up with your repayments. What on earth are you spending this money on that is more important than keeping up with your debt repayments?

paulmcerlean

Disposable income of £1400? Loan?!

Just some money management needed, not another repayment.

If the secured type lenders (Ocean etc...) will not touch you, then unsecured loans will never happen.

derval

Thanks to everyone for replying.
I guess I didn't make myself clear. The point about £1400 was meant to illustrate that, IF I got a loan and sorted out the outstanding issues , that would be our disposable inome and we would be able to afford repayments etc and live comfortably. At the moment I have hardly any disposable income because it is all going on payday loans and credit card arrears. The loan was to remove the arrears and get rid of the payday loans and get back to paying off my debts. I should have mentioned also that our travel costs to work, which can come to £350 per month, come out of that £1400.

CLAPTON

derval wrote: »

Thanks to everyone for replying.
I guess I didn't make myself clear. The point about £1400 was meant to illustrate that, IF I got a loan and sorted out the outstanding issues , that would be our disposable inome and we would be able to afford repayments etc and live comfortably. At the moment I have hardly any disposable income because it is all going on payday loans and credit card arrears. The loan was to remove the arrears and get rid of the payday loans and get back to paying off my debts. I should have mentioned also that our travel costs to work, which can come to £350 per month, come out of that £1400.

post up an SOA and then the facts will be more clear.

chalkie99

derval wrote: »

I guess I didn't make myself clear......

The point about £1400 was meant to illustrate ........

.......we would be able to afford repayments etc and live comfortably.

You don't want to be living comfortably - you want to be living frugally until you sort your debts out.

I agree with all the other replies. Even allowing for travel, how on earth are you getting through £1,000 a month after bills?

Pinkruth

Im sorry to see the predicament your in, but Im not surprised you cant get a loan to be honest. On your own admission youve fell behind behind and missed payments and lenders can see that. The will have no faith in you no matter how much you say you'll pay it. Your disposable income probably goes against you also. Im not being judgemental, I myself struggle with credit and slowly Im sorting it out and will get ther, but it will take a while, which it will with you too.