Confused & Feeling Guilty, Advice Appreciated

MissJelly

I have a pretty bad history of wasting money and desperately want to sort it all out.

In 2005 i got a loan to pay for a car and pay off my credit card

Then in 2008 i let two credit cards build up again and got another loan for £15,000 over 8 yrs at and interest rate of 10.9 to pay off the first loan and the two credit cards (Trouble was i had to get my Dad to countersign it)

Foolish me cancelled one of the credit cards and kept the other one for "Emergencies" racking up another £5,500 between 2008-2010.

I currently pay:
Loan: £253
Credit Card: £140

I want to lower this down as my flatmate has hinted he wants to move out next year leaving me and my boyfriend to rent on our own which i simply cannot afford.

I spoke to my current loan provider who says they do not lend anymore but could do me a new loan for 16,400 at a rate of 13.9 percent which would cost £290 a month.

I thought i would look around a bit, but starting to think no one will have me.

I applied through my own bank HSBC, the application was for a £16,400 loan over 8yrs at 8.9 interest with 3 month payment holiday. Monthly payment would then be around £222 thus saving me around £180 and giving me three months to put some money away for christmas and a deposit on a new flat.

Anyway, HSBC phones me 2 days after the application to go through some things and say that the interest rate is now 11.9 percent, no payment holiday and they would also immediately cancel my overdraft (Which is £500 and i reply upon unfortunately) I burst into tears and withdrew the application.

I have now been refused for two other loans and even tried to do a balance transfer which i keep getting refused on. I dont know what to do. Bearing mind i have never missed a payment in my life, i've always been able to afford the minimums, just not more.

The thing thats eating me up is that i asked my dad for advice and he thought it would help him also to get a loan to pay off his credit card with a little extra to sort out the garden but he was refused because he was my countersignature.

Were HSBC right in doing this? I literally feel like they could have sorted everything out for me and made things so much easier, but they would rather see me suffer.

lindens

TBH I think HSBC have done you a favour. Based on your admitted past behaviour do you really think a 3rd consolidation loan is the answer? You clearly haven't learned your lesson, so go over to the debt free wannabbee board and read the advice over there. Put together an SOA, see where you can make savings ( and I bet you can, there are some great people over there full of wonderful advice) and start making in-roads into your debts.

ihateyes

MissJelly wrote: »

I have a pretty bad history of wasting money and desperately want to sort it all out.

In 2005 i got a loan to pay for a car and pay off my credit card

Then in 2008 i let two credit cards build up again and got another loan for £15,000 over 8 yrs at and interest rate of 10.9 to pay off the first loan and the two credit cards (Trouble was i had to get my Dad to countersign it)

Foolish me cancelled one of the credit cards and kept the other one for "Emergencies" racking up another £5,500 between 2008-2010.

I currently pay:
Loan: £253
Credit Card: £140

I want to lower this down as my flatmate has hinted he wants to move out next year leaving me and my boyfriend to rent on our own which i simply cannot afford.

I spoke to my current loan provider who says they do not lend anymore but could do me a new loan for 16,400 at a rate of 13.9 percent which would cost £290 a month.

I thought i would look around a bit, but starting to think no one will have me.

I applied through my own bank HSBC, the application was for a £16,400 loan over 8yrs at 8.9 interest with 3 month payment holiday. Monthly payment would then be around £222 thus saving me around £180 and giving me three months to put some money away for christmas and a deposit on a new flat.

Anyway, HSBC phones me 2 days after the application to go through some things and say that the interest rate is now 11.9 percent, no payment holiday and they would also immediately cancel my overdraft (Which is £500 and i reply upon unfortunately) I burst into tears and withdrew the application.

I have now been refused for two other loans and even tried to do a balance transfer which i keep getting refused on. I dont know what to do. Bearing mind i have never missed a payment in my life, i've always been able to afford the minimums, just not more.

The thing thats eating me up is that i asked my dad for advice and he thought it would help him also to get a loan to pay off his credit card with a little extra to sort out the garden but he was refused because he was my countersignature.

Were HSBC right in doing this? I literally feel like they could have sorted everything out for me and made things so much easier, but they would rather see me suffer.

I feel for you as there are many people in your situation.

I personally feel that consoldation loans shouldnt be paid to people, instead they paying details given to the loan company, and they pay the bill for you...... andd that like switching they then have the authority to close the cards/overdrafts down etc....

all to often (i worked in a bank) people apply for consoldation laon, pay of loans, cards, then re rack the cards again.

i agree with HSBC's plan to withdraw your overdraft while giving the loan to you... and remember they can withdraw your OD at any time....

You need to go to CAB and get help on your finances, cos it would seem your living outside your means.... to have a flatmate, and still your in it it bads..

i hope this doesnt sound harsh, but cutbacks now, even for a few years will help reduce your debts, and free money up quickly.

ie are you on a contract on your mobile? can you cancel it? Most networks do packs ie Vodafone £10 pack runs for 30days.... 100mins, 300 texts. and a webpack.

do you smoke.... cut back on 20 a week, do you drink etc etc
even in the supermarket you can save a fortune.

here is a common one..... do you go to the local shop for papers? is it within 1/2 a mile... i bet you drive there..... start walking. tthink about how many times you might drive there, the amount of petrol you use going to and fro....

good luck

chalkie99

Oh, come on!

You started your post with:

I have a pretty bad history of wasting money

went on to tell us how you have lived on ever increasing loans, credit cards and an overdraft and end up blaming the bank!

Time to take responsibility for your own actions.

Get over to the Debt Free wannabe board and post up an SOA (Statement of affairs) so people can give you some idea of how to budget.

At the moment you are just dreaming of larger loans at higher rates which will take ever longer to pay off. More borrowing is not the answer.

CLAPTON

sadly you won't need a new loan or indeed any new credit facilities but need to learn to start budgeting properly and maybe to increase your income.
How old are you? do you really want to be burdened with a large loan for another 8 years?
1. start with wrting out a budget (an SOA in the trerminology here)

http://www.makesenseofcards.com/soacalc.html

2. start to keep a spending diary; write down everything you spend no matter how small; relate this to your budget

3. can you increase your earnings.. maybe part time job

and as Lindens says go over to the debt free wannabe boards... lots of people with similar stories there, lots of support and help too

MissJelly

I appreciate you taking the time to advise, i guess when i said wasting money i didn't mean spending it on shoes and clothes and stuff, most of it is from things like withdrawing money from it to pay for rent and tax and stuff when i was working for an agency that could only give my 16 hours a week and struggling to find full time work.

I never for one second blame the bank, i know its my fault and i guess im thinking short term instead of long term so i guess it was hard to see that they were doing the right thing

I will try and cut back on everything i possibly can and budget a bit better.

Thanks

I just feel so bad about effecting my dad and wished there was a quick fix.

ebayqueen_2

Hi there:wave:

Well done for posting your worries. You now realise the situation that you are in and you have made the decision to get yourself sorted.

Please go to the Debt Free Diary board. Amazing stories and a great incentive to get you started.

Start your own thread on there and you will get loads of help. Don't be too hard on yourself, forgive yourself and get yourself sorted. Your family will always love you and they will see that you are trying your best to sort it all out.

I wish you all the best:)

CLAPTON

you appear to live in London; I am a little surprised it's not possible to find full time work or two part time ones

MissJelly

That was 2008/2009 and was in a different town.

Im currently lucky to be in secure full time employment and have not used my credit card in over a year, just struggling to pay off more than the minimum/interest.

The point was that i have been in denial for a long time and want to finally sort it out.

CHR15

I hope the penny has dropped after your previous loans that you simply cannot buy your way out of debt.

There is no easy way out, it takes both time and commitment. As advised above, the DFW Board is full of people with time to help you, the commitment is all down to you

Good luck

dtsazza

MissJelly wrote: »

I just feel so bad about effecting my dad and wished there was a quick fix.

That's exactly what has possibly led you to where you are now.

The first thing to do is realise that there is no quick fix, and the only way to be rid of debt is to pay it off. The only way to pay it off sooner is to increase your earnings and/or decrease your outgoings. (And consolidation loans very rarely work for the latter - only when you're supremely disciplined financially, which applies to almost no-one that needs them in the first place.)

I agree that posting a SOA on the DFW board is a good first step - posters there will help you work out how to both up your income and decrease your expenses. But you need to realise that this is how it's going to be, and come to terms with it.

It will take you several years to fully pay off the debt, but it'll take even longer if you don't have your "light bulb moment" now and get into the right frame of mind to pay it down over time. More credit is not the answer.