took wrong advice from the bank

msconsumer

Last year my bank advised me to take out a loan and a credit card to pay off an existing credit card, which had £6,000 in debt. I was advised to transfer the debt onto the new card which was interest free for 6 months. There was a limit on the new card so I was given a choice of a loan to pay the rest of the debt. So I have a loan for £2,700 and card for £2,600 plus the existing card for £1,800. This is now costing me over £200 per month to pay of all these debits. I contacted my bank, but they refuse to offer me a loan to repay all of the debits. The reason they give is that, I do not for fill the affordability criteria, and I had 14 days to change my discussion once I signed the agreements.
This financial situation has caused me a lot of stress and unpaid bills. I have recently cashed in premium bonds and a life saving policy to pay of mounting bills, as I will as defaulting on my credit cards. I currently employed earning £1,000 per month take pay. My travel cost are mounting up, I am paying £70.00 per week in petrol to get to work. I have no non essential bills to pay. Due to the loan and credit card, I am left with £25.00 per week to spend on food, etc. This has been an extremely difficult financial period for myself, all because I trusted my bank with my finance. I have been mislead and ill-advised with the credit card and the loan What can I do?

Hax

Sorry, can I just make sure that I understand this right:

1. Your original credit card debt was £6000
2. Your bank gave you £5,300 (£2,700 + 2,600) in new credit to clear this debt, leaving you with £700 on the old credit card
3. You have since run up a further £1,100 on the old credit card.

Not intending to sound "mean" - but why is it the banks fault that you have run up more debt? You should have cancelled the original card, not started using it again.

The basic problem is that your outgoings exceed your income - that's the root of your problem and that's what you need to address.

Pop along to the Debt Free Wannabe section of these forums and ask for some advice there - they may be able to help you with budgeting and reducing this debt.

msconsumer

loan £2,784.89. credit £2,205.43 0ld credit card £1,696.18 I should have been more precise with the amounts. I have not used any of the credit cards.

Emmzi

I think Debt Free wannabe board is the place for you.

You won't get anywhere with the bank as you are an adult and had all the information.

DFW can probably help with shaving a few quid off the essential bills. And the can definitely feed you for £25 a week, between them and old style.

Also try the up your income thread.

opinions4u

I'll second the Debt-free Wannabe idea.

The bank sorted you out with 6 months interest free on part of your debts. You say you haven't spent any more money. So how come it's their fault you're now in debt?

What were the total monthly payments 12 months ago? What were they 5 months ago? What are they now?

msconsumer

I am not saying its the banks fault, I was wrongly adviced, I have even less direct debits and standing orders than I did last year! The cost of living has gone up, petrol food etc. I am not receiving any more funds to account for this rise. This was not taken into account when I was advised to take out the loan and credit card. Its just a mess!!!

BoGoF

I'm confused as to what your point is - are you saying they shouldn't have offered you the consolidation loan because the cost of living has gone up?

Don't you think that everyone in the UK has increased costs?

McKneff

The bank didnt know you were not going to be able to fund it, you obviously told them you could and probably had paperwork to prove it.

Neither could they know how fast and how much the cost of living would go up.

Post up an SOA and we'll try to trim some of your costs for you.

Emmzi

msconsumer wrote: »

I am not saying its the banks fault, I was wrongly adviced

These statements are contradictory.

Either you are saying it is the bank's fault or you are not.

msconsumer

If the bank went throgh my account they would not have let me have the loan and the credit card. The bank should have given me a full loan, and not a credit card. I will be taking this further.... I have applied for a remortage but I not able to have one, even though I have only 7 years to pay off my mortage. I am thinking of going to another mortage lender, so I can clear these debits that are hanging over me...

msconsumer

My bank were not looking after my interest but there own!