Help needed

confusedvictoria

Hi first time on here. In need of some advice. I have a £2,100 overdraft, a £2,800 barclaycard and £750 on another credit card. I've applied for a loan with sainsburys, tesco and been declined. I checked my expirien report and there are absolutely no issues.

I'm keen to pay off the debt in one monthly payment each month of about £200 over the next 18months/2 years.

Please help?

fozmcfc

You might have a large amount of debt compared to your annual earnings.

What you want to do is consolidate your debt, but when you apply for a loan in your case £5,000 +, they will add the money you owe to £5,000 and compare it to your annual income.

The reason why, is because they have no guarantee you would pay off all the other debt or you could get the loan, pay it off, then run up the 2 credit cards again and the overdraft and be left with loan repayments and the cards and overdraft to pay.

Believe me I am one of numerous people around here, who has consolidated debt and then a little way in spent on credit cards and been in a worse position.

As has already been said £200 a month for 2 years only amounts to £4800 and that's without any interest. You currently owe £5650, so unless you don't intend to pay off everything with a loan, you are looking either £300 + a month over 2 years or £200 over 4 or 5 years, taking into account the interest on top of say a £6000 loan over 2 years.

Your bank will be your best bet as they will know your finances better than anyone. You might be able to pursuade them if you say you will be willing to remove the overdraft and if one of the cards is with them also to close that. That way they can guarantee that the overdraft and one of the cards would be paid off for sure.

You also have applied for 2 loans, your next application is crucial because it is widely thought that a person who applies for credit more than 3 times over a 6 month period is desperate and it puts lenders off.

More details on annual income needed, also whether you are on the electoral role and if you have missed/late payments or anything worse over the past 6 years. Don't forget there are 3 credit reference agencies.

Apples2

confusedvictoria wrote: »

Hi first time on here. In need of some advice. I have a £2,100 overdraft, a £2,800 barclaycard and £750 on another credit card. I've applied for a loan with sainsburys, tesco and been declined. I checked my expirien report and there are absolutely no issues.

I'm keen to pay off the debt in one monthly payment each month of about £200 over the next 18months/2 years.

Please help?

It's difficult to understand your thinking if you want to clear almost £6k in 18 Months whilst only repaying £3,600 in total not even considering interest (£200 a Month for 18 months = £3,600).

You need to look over your numbers again.