Loan Advice Needed!!!

Lolagirl_2

Hi Everyone
Please could you offer your help and opinions with my dilemma.
My partner and I currently have 3 loans.
1 is due to end Nov 2013 and has 5k left on it, its costs £200 a month
2 is due to end Nov 2014 and has 8k left on it, it costs £171 a month
3 is due to end Nov 2017 and has 15k left on it, it costs £337 a month
A lot of debt I know but we pay the monthly payments every month and have never missed one. We are now thinking should we take out a larger loan over a longer amount of time because these repayments are costing us £708 a month and it leaves us with no disposable income and with a new baby we need some money! I have looked online and seen that companies are offering loans which would costs us approx £350 a month, giving us disposable income.
The problem lies in this would have to be a joint application as I have returned to work part time and am now earning 25k pro rated over 3 days (used to be 25k for 5 days) and my partner with overtime earns 23k but his official salary is 20k. Do you think anyone would accept us based on this? I noticed Tesco loans do joint loans?
Thanks for reading and hopefully replying!
Lola

lindens

You are looking to borrow £28K so will have to get a loan secured on your home?
Do you really want to do this?

Malky

You won't get an unsecured loan for £28K. The max is £25K. You may even struggle to get £28K secured. Even if you did, wouldn't it be wiser to pay £28K or £25K over 5 years? At 9% APR, monthly payments would be £550 or less saving you £150 per month.
I think the real problem here is to find out why you keep borrowing.

Apples2

Lolagirl wrote: »

We are now thinking should we take out a larger loan over a longer amount of time

It looks like you have done exactly that twice now, it shows by the way your current loans are increasing each time.
If you keep doing that something will break catastrophically.

It is NEVER a good idea to turn unsecured debt into secured debt, you could lose your home.

You'd do better curbing your outgoings and living frugally whilst you try to overpay these current debts.

With current debts of £28k it would be extremely unlikely any lender would acceot you in any case, you are already well in excess of 50% of your combined salaries.

Further borrowing does not look like the answer, sorry.

chalkie99

You probably won't thank me for pointing this out but, whilst you were pulling in a very healthy 48k per year, you managed to rack up very large debts and, if I understand correctly, your gross wage has now dropped 10k.

You were living beyond your means before you had another mouth to feed and reduced income so you need to take steps to see where you can cut outgoings. Your best option is to pop over to the Debt Free Wannabe Board and fill out an SOA (Statement of Affairs) so you can get some advice on where to save.

As any lender will see your application for more credit as an addition to what you already owe there is next to no chance they will give more credit so your only option would be a secured loan against equity in your home (if you have any) and that is never a good idea.

magpiecottage

Apples2 wrote: »

You'd do better curbing your outgoings and living frugally whilst you try to overpay these current debts.

Absolutely. You cannot borrow your way out of debt, you can only pay your way out. The sooner you do that the less pain there will be in the long run.

Lolagirl_2

thanks everyone for replying i appriciate your advice. in answer yes we are homeowners but i will take your advice and keep ploughing on paying these debts off. thanks i just think i needed to hear impartial thoughts.

Lola

27col

Although you say that you wanted to get some impartial advice, I suspect that you already knew what that advice would be. As magpie says, you cannot borrow your way out of debt. You need to seriously reappraise your spending habits and pay off a good chunk of the existing debt.

Apples2

Lolagirl wrote: »

thanks everyone for replying

Lola

You could always go back to being a Showgirl :j:j

LovelyLeeds

Thanks! I now can't get Copocabana out of my head! :undecided