need help

THEDON25

I am in £25000 debt and looking for a consolidation loan. I dont know who to ask our where to apply as all the advice companies seem to be out for all they can get.

I have a 9k loan monthly payment £204
8500 credit card monthly payment £230
7500 credit card monthly payment £ 280

I have a clean credit history but I am at the maximum i can lend.

my mortgage is £124,000 and the house is worth 155,000

i have even thought about selling the house to clear but really dont want to do this.

who can i trust?

i just want a managable monthly payment
Thanks

michael1983l

THEDON25 wrote: »

I am in £25000 debt and looking for a consolidation loan. I dont know who to ask our where to apply as all the advice companies seem to be out for all they can get.

I have a 9k loan monthly payment £204
8500 credit card monthly payment £230
7500 credit card monthly payment £ 280

I have a clean credit history but I am at the maximum i can lend.

my mortgage is £124,000 and the house is worth 155,000

i have even thought about selling the house to clear but really dont want to do this.

who can i trust?

i just want a managable monthly payment
Thanks

If you are at your maximum borrowings then you will not get a consolidation loan because they have to assume this is a new loan and you will not pay off your debts. This means you will owe 50k, so unless you are on 100k a year you will not get this amount.

Your best option will be to speak to your current lenders and ask them if they will accept a lower payment until your circumstances change, steer clear of secured loans and debt management/IVA companies that are not charities.

You may be best on a debt management plan with https://www.payplan.com if you cannot afford your current payments. They will deal with your lenders and offer them what you can afford.

Have you done a statement of affairs (SOA)?

RuthnJasper

Well, my debts were pretty similar (£28k) before I had my "lightbulb moment". I investigated lots of reputable sources of advice (CAB were the best help) and got an IVA. It's been tough, I won't lie, and I still have just under a couple of years to go - but I still maintain that it's the best thing I ever did.

It's not right for everyone though, so please think about it CAREFULLY.

I strongly recommend making an appointment to see someone at the CAB - it's free and it can make the world of difference. You don't mention what your income is - it may be that you are earning enough to enable you to find a solution that isn't TOO drastic. But you are doing the right thing in putting a stop to the borrowing NOW before it gets any worse.

Here's the CAB link if you want it: http://www.adviceguide.org.uk/index/your_money/money_management_index_ew.htm.

Good luck to you - hope all will turn out well. You've come to the right place.

InsertWittyName

Solid advice from the posters above.

A consolidation loan may seem like the solution - but it rarely is.

I took out a consolidation loan for £10k just over 4 years and it was great. It ended a few months back and guess what? My debts are now circa £18k.

Posting up your SOA would allow us to give you more specific help on what you should do.

It's not all about paying the debts off - the biggest battle is identifying how you original got into debt and fixing it so that it doesn't happen again.

jc808

hy not remortgage? no need to sell house then

CLAPTON

THEDON25 wrote: »

I am in £25000 debt and looking for a consolidation loan. I dont know who to ask our where to apply as all the advice companies seem to be out for all they can get.

I have a 9k loan monthly payment £204
8500 credit card monthly payment £230
7500 credit card monthly payment £ 280

I have a clean credit history but I am at the maximum i can lend.

my mortgage is £124,000 and the house is worth 155,000

i have even thought about selling the house to clear but really dont want to do this.

who can i trust?

i just want a managable monthly payment
Thanks

without knowing your income or your spending or even the APRs of the loans it's impossible to say anything of value.

post up your details here
http://www.makesenseofcards.com/soacalc.html

petedj83

Try Gregory Pennington.

My situation was a lot different to yours, in that mine was debt consolidation and I don't own a house, but they did manage to help me.

What they will do is they will ask for how much you earn and do a 30 minute (roughly) chat with you on all of your expenditure and then discuss how much you can afford. They are very tight on this so you could be a little economical with the truth, and therefore work out enough disposable money to make yourself more comfortable.

For eg, say if you take home £1500 a month.
Declare rent at £400
All other household bills at £400
Living expenses (Food shopping & petrol) £400
GP would then take £300 off you a month.

So therefore if you tweak the figures a little - increase bills & living expenses for eg - they will take less off per month thus giving you more at your disposal, BUT this will mean it'll take longer to pay off your bills.

Clive_Woody

petedj83 wrote: »

Try XXXXXXXXXXXXXX.

My situation was a lot different to yours, in that mine was debt consolidation and I don't own a house, but they did manage to help me.

What they will do is they will ask for how much you earn and do a 30 minute (roughly) chat with you on all of your expenditure and then discuss how much you can afford. They are very tight on this so you could be a little economical with the truth, and therefore work out enough disposable money to make yourself more comfortable.

For eg, say if you take home £1500 a month.
Declare rent at £400
All other household bills at £400
Living expenses (Food shopping & petrol) £400
GP would then take £300 off you a month.

So therefore if you tweak the figures a little - increase bills & living expenses for eg - they will take less off per month thus giving you more at your disposal, BUT this will mean it'll take longer to pay off your bills.

This company you recommend charge an initial fee of the entire first monthly payment and take a 15% cut of every monthly payment you make therefore signifcantly prolonging the period of repayment and costing you more. Not a good deal at all

I believe there are debt charities that offer this service for free.

Debt management fees

The fees on our debt management plan fall into two categories:

• an Initial fee (your first monthly payment, subject to a minimum of £225 and a maximum of £475) and
• an ongoing Monthly fee (15% of each monthly payment you make - subject to a minimum of £32.50 and a maximum of £85).

petedj83

Clive_Woody wrote: »

This company you recommend charge an initial fee of the entire first monthly payment and take a 15% cut of every monthly payment you make therefore signifcantly prolonging the period of repayment and costing you more. Not a good deal at all

I believe there are debt charities that offer this service for free.

Hi Clive,

You're absolutely correct and i'm sure charities work very well. I never explored that avenue.

I just felt that when you are paying a company to do a job, they tend to do it better as there is something in it for them.

I had £16,000 in debts which were cleared in full in 3 years & 3 months. I can't complain because I got what I paid for, even if it has cost me some money.

It's a bit like saying "why buy some shoes from Clark's for £80 when you can go to Priceless Shoes for £8?". Both will do the job, it's just whatever quality you think you'll get.

Tixy

petedj83 wrote: »

Try Gregory Pennington.
.

When a company charges you a monthly fee whilstever you make a payment to them its actually in their interest to keep you in debt for longer and evidence posted on here suggests they don't alway act impartially or recommend the best option to people in debt.

These types of firms are never recommended by MSE or the experienced posters on here. The charities will give you impartial advice and act for you for free.
IMPORTANT - Where to seek professional impartial advice about your debts.

And creditors prefer to deal with a firm they know are not charging the debtor fees, as they will know they are getting all the debtor can afford to pay a month, not all the debtor can afford to pay less an expensive fee.

CHR15

petedj83 wrote: »

It's a bit like saying "why buy some shoes from Clark's for £80 when you can go to Priceless Shoes for £8?". Both will do the job, it's just whatever quality you think you'll get.

Not really, It's more like saying, "why buy £80 shoes direct from Clarkes for £95 when you could buy them from a high street store for £80".

By going with these fee paying companies you are paying much more than face value, a good portion is going directly into their pockets. You have paid a lot more than the debt you owed.

Good news it worked for you but you could have saved a LOT of money by going elsewhere.