How do I consolidate?

starsky365

I have several cards which I want to consolidate or BT to one account. I have 5.9% LOB with barclaycard but they wont increase my limit to accept the BT's due to 'high levels of borrowing from others' I have tried explaining that I would simply be shifting borrowing to them and closing other cards so there would be no additional borrowing but they dont seem to understand. All they say is "yes but you want to borrow more from us"

Any ideas what I can do? Bank doesnt want to know when I approached for a consolidation loan.

BugsyBrowne

Consolidation loans are harder to get as you are doubling up your current debt and to a bank they don't know if you will pay your current debt up.

Tixy

All banks assess your affordability like this. They cannot be certain that you will not run up the old cards again, or in the case of the loan that you would even use it for consolidation. So they have to assess the worst case sceanrio that you end up in almost twice as much debt (the existing debts and your new credit all maxed out).

It sounds like you are in the position now where you owe too much to get any extra credit - you are certainly not alone in this at the moment. If you have any unused credit you could try reducing limits/closing accounts to see if that might make a difference. Aside from that its just a case of throwing as much as you can at the highest rate debts first to reduce your balances and minimise the interest you pay overall.

CLAPTON

you haven't told us

what your total debt is
what your salary is
what the APRs are on the debts
what your credit records say
whether you are on the electoral roll

starsky365

you haven't told us

what your total debt is = £26k
what your salary is = £42k
what the APRs are on the debts = vary from 5.9% to 21%
what your credit records say = all rosy - lots green dots
whether you are on the electoral roll = yes

CLAPTON

your level of debt is high in absolute terms and relative to your income (i.e. more than 50% of your income)
barcalycard would be taking quite a risk if they allowed you to transfer all that debt to them
although you may intend to pay off debt with any new borowings there is no obligation on your to do so; after all you have run up a pretty huge debt already

I doubt anyone will give you a large loan but it may be worth consider a 'piecemeal' approach ; get a relatively small loans or CCs with lower levels of APR and transfer the highest debt to them; once that all shows up on the credit record them try again so you eventually end up with most of your debt at lower APR

and of course use any surplus cash to pay off the debt with the highest APR as a priority

GemBlueTopaz1984

thats your problem then, you debt is currently more than 50% of your salary, 50% is generally the max most people can get. Essentially like others have said, what you are asking for is another £26K on top of the £26k you owe. The bank can't be certain that you will use the loan for the debt or that you won't reuse to empty cards and run it up all over again (as this is the case for so many people who consolidate) making you have a debt of 52K so this is what they class your exposure as, it is very unlikely you will be able to get another loan on these figures even though your intention is to consolidate.