£20,000 debt

Stitchlover1

Me and my partner are currently in £20,000 debt over 6 credit cards. Only one of them is on interest free. We are currently paying around £700 in minimum payments. Ive looked at a loan over 5 years and we would pay about £400 a month which obviously would be a fantastic saving. Another thing we have to worry about is that we have a 120% mortgage and it is due for renewal in Sept 2012. Would we be frowned upon for getting a loan for 20k - should we wait until after we remortgage ? Im just really not sure what to do at the moment, and I have missed a couple of payments on one of the credit cards. Please help, any comments (constructive of course) are much appreciated.

OllyM

Well, where to start. 120% mortgage, good luck with the remortgage - you'll need it!

With recent missed payments and large unsecured debts I'd say that you have little hope of getting an unsecured loan either.

What else do you want us to say?

grumpybutprettygorgeous

I would suggest you definitely wait before taking out the 20k loan, that will go against you when you try to re-mortgage. Also, if you can, pay off the arrears on the credit card, as that won't help your case at all. I know it's easier said than done, but are any of your family in a position to help with the arrears payments on a short term basis, until you have your mortgage renewed? Good luck

Running_Horse

This is the wrong forum.

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

You have not posted in the DFW board for three years.

Set up camp in there until they give you the kind of serious help you really need.

moonrakerz

The first thing you should do is cut up all of the credit cards !

An all too common happening in cases like yours is a loan is taken out and the cards are all paid off - then promptly filled up again !!!! £40,000 in debt.................

Bev._2

Question: have you been cutting back on things as much as you COULD'VE/SHOULD'VE done in order to make payments? (reducing/stopping nights out, eating out, going for drives just for the sake of it, buying clothes you don't NEED, etc etc etc)

Xbigman

Whether you have a 20k loan or 20k on credit cards makes little difference, its still 20k debt. If you get the loan you'll need to cancel most of the credit cards otherwise your available credit will count against you.
Whether or not you can get a loan is dependant on your income rather than negative equity but with missed payments you're unlikely to get one at a rate much lower than the credit cards.

Remortgage wise, you've no chance. You should be able to move to a new deal with your current provider with out a big problem.



X

chattychappy

Xbigman's guide to a happy life.

Eat properly
Sleep properly
Save some money

(emphasis added)

Posted at 3.10am !!

Stitchlover1

OllyM wrote: »

Well, where to start. 120% mortgage, good luck with the remortgage - you'll need it!

With recent missed payments and large unsecured debts I'd say that you have little hope of getting an unsecured loan either.

What else do you want us to say?

Thats not very helpful really OllyM that was the first comment I read and made me feel really downhearted.

Stitchlover1

Thanks for all of the other comments, Ive tried all of the selling stuff on ebay, cutting down on nights out, holidays etc I don't know maybe im not sticking to it enough but it doesnt seem to work. Obviously the loan is appealing to me as it would reduce our payments by £300 a month which then in turn I could pay part or all of this "saved" money by paying off the loan on my mortgage (part of the 120% mortgage) I have already had a call from Northern Rock who have advised I can stay with them but would be on a variable rate.

Tixy

Myabe try going back onto DFW, preparing a new SoA based on your current situation and see if people can suggest other changes you can make so that you will start to make inroads into your debt.
If you have already done a statement of affairs for yourself that says you should be able to reduce your debts but in practice you are not doing then something on the statement of affairs is not accurate. A really detailed spending diary for a couple of months might help you track down where you spend more than you think.

Given your finanical position I really would look again at your spending to see what you can change.

As others have already said it would seem you almost certainly won't be able to get a loan, and even if you could get one I doubt it would be anything like as cheap as you mentioned in post 1. £400 a month would be an apr of less than 8% which you wouldn't be able to get.