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Co. Director, low income need a personal loan

Can anyone advise?
My husband is the director of our limited company, and has an income of around £6000 a year.
We however take in total (including this income) £13,200 net from the business annually.

When trying to apply for a £6000 loan today to pay off car finance (i.e. no increase in monthly payment, and no history of missed payments) he has been refused.

I would apply, but already have 2 loans in my name, can anyone suggest a solution or been in this situation and worked it out?

Thanks

Comments

  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You may be better posting this on the loans board BUT I will say this is what happens when you 'play' the tax system - his 'salary' means computer says no
  • dsa1980
    dsa1980 Posts: 26 Forumite
    Hi,

    Unfortunately, the accountant never explained the pros and cons of this to us years ago, when we were new to setting up a business and it's not really possible to change it now.

    Do you know how I post the thread on another board, or do I just copy and paste the text into a new thread?

    Thanks
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I would just copy and paste your original post in the loans thread.
  • Why is not possible to change it? Surely he could just pay himself more through his wages and take less dividends?
    LBM April 2011 £4906

    :j:j DEBT FREE 4th NOVEMBER 2011 :j:j
    Clothes Challenge 2011 £60.24/£200
    Virtual sealed pot #136 - £1.60 Sealed pot # 1365 Nectar card - £8.80 Overdraft £0.00
    Do I need it? Can I afford it? Is it cheaper elsewhere?
  • Does the Business not have any money he could loan?
    LBM April 2011 £4906

    :j:j DEBT FREE 4th NOVEMBER 2011 :j:j
    Clothes Challenge 2011 £60.24/£200
    Virtual sealed pot #136 - £1.60 Sealed pot # 1365 Nectar card - £8.80 Overdraft £0.00
    Do I need it? Can I afford it? Is it cheaper elsewhere?
  • Savvy_Sue
    Savvy_Sue Posts: 47,500 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The OP's thread on the Loans board is here.
    Signature removed for peace of mind
This discussion has been closed.
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