Can't get credit :-(

rex_mundi_2

Hey guys....

Really hoping for some help, feel like I don't know where to turn at the minute

I've got myself into the position recently of relying on payday loans. I took one out in February to help with some extra expenditure, paid it back on payday, then got half way through the month and found myself short again... this has pretty much continued on since then... :-(

I also have 3 credit cards and an exsisting loan, that I would LOVE to consolidate.

So my plan for the past few months has been to try and find an unsecured loan, pay off the 500 of so that i keep borrowing from Wonga, as well as my exsising loan and my 3 credit cards... have one monthly payment and be stress free and happy

The problem is i can't get an unsecured loan ANYWHERE

Granted i have tried several times with lots of different companies, and I tried with my bank again today and they said they wont even consider it because i applied with the in April, and was declined

What i can't figure out is why i'm getting declined. I am 25, i bring home over 2000 every month, and my outgoings are minimal...

I owe in total 3500 spread over 3 credit cards, and around 8000 left on a loan from Santander...

My ideal solution would be a nice unsecured loan with a decent rate over 3 years

but if thats not going to happen a way out of this payday loan cycle would be good...

HELPPPPPP

PLEASEEEEEEEE

kerrypn

Stop applying for credit! Multiple searches on your credit file count against you. You need to leave it at least 6 months now if you have been refused multiple times. Check your credit file is correct with the CRAs too.

Post up a SOA link here http://www.makesenseofcards.com/soacalc.html and people will be happy to help.

rex_mundi_2

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 50
Groceries etc. ......................... 150
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 70
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 150
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 150
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1305

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
BarclayCard....................2000......30........0
Capital One....................1000......30........0
Vanquis........................500.......30........0
Santander......................8000......368.......0
Total unsecured debts..........11500.....458.......-

Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,305
Available for debt repayments........... 995
Monthly UNsecured debt repayments....... 458
Amount left after debt repayments....... 537
Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,500
Net Assets.............................. -5,500

Tixy

When you apply for a new loan, even if you intend to use it for consolidation any potential lender looks at this as additional debt to the debt you already have and any unused existing debt. This is because they cannot be certain you will consolidate or will not run up the card debts again.

It looks like you earn around £33k pa?
You have debts of £12k so are presumably applying for loans of £12k? This would put your potential maximum exposure to at least £24k, plus any unused credit you have available to you. Its most likely that lenders are judging that you cannot afford to service £24k of debt.

In addition to that multiple loan applications will make you look deperate for credit. And if your payday loans appear on your credit file then it will look to any potential lender that you are not handling your money well.

Stop applying for new credit, work out a budget you can stick to and work on reducing your debts.

Tixy

From your statement of affairs - where is the £537 'surplus' being spent every month?
You haven't included your payday loan in your list of debts.
Do you have an overdraft that you use? if so you also need to include that.

If you stopped spending as much as £1200 a year on clothes and £1800 a year on presents you could soon make a real dent in your debts. There are other areas you could save to - your internet and mobile costs both look high and you could probably reduce your grocery costs down to free up more for debt repayments.

kerrypn

rex_mundi wrote: »

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300 with this being low and no other bills showing, do you still live at home?
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 80 too high-is this contract/PAYG? Try to reduce if contract/switch to PAYG
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 50 This is massive-reduce this, deals available from £7,99 a month
Groceries etc. ......................... 150 is this just for you? Look on the old style boards for tips to reduce groceries-you could easily half this figure
Clothing................................ 100 sorry, but this should go on your debt
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 70
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 150 what is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 150 Too high-how many are you buying for?
Haircuts................................ 10
Entertainment........................... 100 on what?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1305

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
BarclayCard....................2000......30........0
Capital One....................1000......30........0
Vanquis........................500.......30........0
Santander......................8000......368.......0
Total unsecured debts..........11500.....458.......-

Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,305
Available for debt repayments........... 995
Monthly UNsecured debt repayments....... 458
Amount left after debt repayments....... 537
Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,500
Net Assets.............................. -5,500

Just a few pointers. I dont think you need a consolidation loan looking at these figures. You need to cutback where indicated and throw as much as possible at your debts. Start with Wonga next month. Pay off and do not renew!!!

Then go to the next highest interest rate debt and so on.

You will need to be strict with yourself and live more frugally whilst you bring the debts down. The suggestions above could free up £200 a month plus for debt repayments. You can and will be able to clear these if you are commited to do it, keep posting for support, write up a plan of how you are going to tackle your debt in which order and how much. Set yourself a date to be debt free.

Keep a spending diary.

HTH

redpete

rex_mundi wrote: »

i bring home over 2000 every month, and my outgoings are minimal...

...and your SOA shows £500+ available each month, and plenty of scope to get another couple of hundred each month (start by cutting clothes, presents and entertainment).

Unless you are seriously under-estimating something which would explain why you need payday loans every month and can't clear the existing loans.

paulmcerlean

Cant understand why you need a payday loan every month with the spare cash you have?!

With your level of unsecured debt, you are too high risk for a new loan and this is showing through the declines.

You dont need a loan, you need to spend your money more carefully.

Apples2

Either that or be more honest and accurate filling in an SOA.

KingElvis

80 big ones per month on cruddy mobiles :eek:

geoffky

2.3k wages a month and you can not save a penny...oh dear..so many people would dream of them wages...grow up...