7K loan to replace debts

moped_mark

Hi,

I am looking to get a loan to pay all my debts off which comes to a total of £7200. I bring home more than 1144 a month and after bills which exclude the debts, 725 is expendable money.

Annoyingly a few months ago I did have one late payment due to being short of 20p. But other than that I have had a fairly good credit score and have history of sucessful credit within the last 3 months.

Does anyone have any experience of getting a loan for these purposes and have any advice. I have looked at moneysupermarket etc but have had experience of getting turned down at their unrealistic low rated credit!

StuTheDon

Hi,

You are talking about a consolidation loan. The issue you will have is that to apply for a loan to clear these debts, most mainstream lenders will see your debt exposure as approx £15k. This is because they add your existing debt to the new one. Even though you say you will use the new loan to pay off the debts, you have no obligation to do so (i.e. you could just take the loan cash and not clear anything).

To service a debt of £14-£15k you are going to need a salary in excess of £35k I would say.

You could go with other lenders, but they will rip you off with very high interest.

My advise would be to overpay your debts directly, focusing on the cards with highest APR first.

Peelerfart

This is an oft asked question on this board and the answer is pretty much always the same.

Stu is dead right and for the reasons he has stated "you could just take the loan cash and not clear anything"
We know you wouldn't do that but ..............some do you know !

redqueen_2

Its a question of affordability in the eyes of the lender and your net income isn't sufficient and factoring in your current commitment to debt as covered by StuTheDon this means that you won't get a £7200 loan at a competitive rate Avoid loan brokers and whatever you do, don't pay them a fee for processing a loan that you don't qualify for. Try your own bank first, they know your financial history and you have a relationship with them.
If they turn you down then don't use the internet to find a loan - you'll just end up with brokers calling you. If you have credit cards try to consolidate them onto a new card at 0% interest over 15 months - there are a few deals around. Blast through them without paying interest and then move onto your other debts.

CLAPTON

what are the details of the debts?
-amounts,
-aprs
-monthly payments

how much money do you have each month to pay off the debts

Ive_A_Horse_Outside

moped_mark wrote: »

725 is expendable money.

Why not cut out the nights out and other luxury items and live very frugally for 10 months?

10 x 725 = DEBTS PAID

moped_mark

debts

Ccard 1000 APR 29.9% Monthly P: 40ish
overdraft 1600 APR 0% (student/graduate OD altho this should have changed)
store credit 1200 APR 29.9 & APR 25.9 Monthly £40 ish for both
finance loan 3000 APR 14.9 Monthly £57.20
HMRC 408

Ive a horse outside - good try but unrealistic!

BugsyBrowne

moped_mark wrote: »

debts

Ccard 1000 APR 29.9% Monthly P: 40ish
overdraft 1600 APR 0% (student/graduate OD altho this should have changed)
store credit 1200 APR 29.9 & APR 25.9 Monthly £40 ish for both
finance loan 3000 APR 14.9 Monthly £57.20
HMRC 408

Ive a horse outside - good try but unrealistic!

No one is going to lend you 7.2k and thats final.

Ive_A_Horse_Outside

moped_mark wrote: »

debts

Ccard 1000 APR 29.9% Monthly P: 40ish
overdraft 1600 APR 0% (student/graduate OD altho this should have changed)
store credit 1200 APR 29.9 & APR 25.9 Monthly £40 ish for both
finance loan 3000 APR 14.9 Monthly £57.20
HMRC 408

Ive a horse outside - good try but unrealistic!

Its not unrealistic. If you want to clear your debts this is what you will have to do as no-one will lend you 7k.....

drbesty

You wouldn't be clearing your debt, you'd just be moving it to another place, and it'd probably take longer to pay off

moped_mark

star-fire wrote: »

No one is going to lend you 7.2k and thats final.

I hope you don't work for the samaritans! lol