need advice about a new loan

pop91

the total debt is around £15000 so the loan will completely wipe that out.
why do you say the total debt would be £30000?
the loan will be used to zero the £15000 debt. So in the end I'm still left with the £15000 of the loan and since I'm managing at the moment that is perfect proof that I will be able to manage the loan repayments, right?

or am I missing something? I've had cards in the past but never had a loan; I didn't think it would be so difficult to get one!!

Would I have better chances with a lower amount?

pop91

oh by the way, I'm not struggling at all to make minimum payments, the payments I make are a lot more than the minimum required.

iolanthe07

why do you say the total debt would be £30000?

Because that is how lenders will see it. They have no guarantee that you will actually use a new loan to pay off the old one, so they will add the two loans together and see that as your exposure.

stephane_2

You are in your overdraft every month to what we understand the maximum limit, you are making more than the minimum payment on your credit cards, but yet you don't seems to reduce your debt level. There is something not quite right there. As I said before, you need to have a look at your monthly outgoings and work towards getting the overdraft to £0

pop91

yes sorry, what I meant was that although I make a lot more than the minimum payments, the debt doesn't go down each month. That's why I want the loan!! to make the debt go away and then the money I spend it surcharges and interest to pay it into the loan (ie: with the loan I'll have more money left every month which I'll be able to use to pay the loan off).
As it is at the moment, there is no "spare change" left at the end of each month (I live alone in London, say no more!) so minimising the debt without a loan is impossible.

Tixy

If you are paying a lot more than the minimum payments then the debt must be going down? Unless you are respending on the cards?
I would put your figures into the snowball calculator - you might be surprised at how quick you would be able to get the debt down, just by keeping on with the current repayment level.

If you are respending on the cards each month then you need to work out a way to stop by changing something about your finances (earning more, getting things cheaper, cutting back).

As has already been said - a loan is just not going to be an option based on your circumstances.

stephane_2

For what I understand...more than minimum payment is made...then more spent is being done on the credit cards and on top the overdraft is maxed up...the fact of living in London that's no excuse on a £34000 salary

pop91

ok guys, thanks for the insight, I just didn't understand that's how banks think before giving loans. I can see their logic but it doesn't make sense to me.


thanks everyone

Tixy

stephane wrote: »

For what I understand...more than minimum payment is made...then more spent is being done on the credit cards and on top the overdraft is maxed up...the fact of living in London that's no excuse on a £34000 salary

If this is right and you cannot meet your minimum repayments without reusing the paid off credit - and if you cannot change your finances so that you are able to do so - then I would consider speaking to one of the debt advice charities.

stephane_2

I understand about the overdraft but there's not much I can do about that to be honest, unless I stop paying the credit cards (not huge amounts on the credit cards but they're maxed out too although I pay a lot into them every month, which I then use up by the end of the month).


I think that says it all.....