Consolidating my debt - Bad credit rating

superbbb87

This is my first time posting so please forgive me if I get this wrong.

I currently have around £6500 in debt (most of which stems from issues left by my ex - lessons learnt!). I am wanting to consolidate this debt into a £7500 loan (bit to put aside for contingency) I can pay off over 3 years, but my credit rating is very poor. I have tried every possible route I can think of in securing a loan but to no avail. The best I have been offered is £5000 over 5 years at a ridiculous interest rate with a suitable guarantor (which I don't have). The solutions I've found offered by debt management company's also don't appear suitable as some of the money is owed to people direct. I hate the fact that I am in this position, even worse is the fact that I can comfortably afford to pay back the loan if only I could find someone willing to provide the funds. Does anyone have any other possible solutions? Any help would be much appreciated. Thanks

System

I think you're unlikely to find anyone to lend to you with a poor credit rating, but other people will be able to confirm this. The problem is, lenders won't have any guarantee that you'll pay back your current debt with the new debt, so by lending to you they would be increasing your total debt to £14,000.

I would suggest you go to the debt-free wannabe board (http://forums.moneysavingexpert.com/forumdisplay.php?f=76) and post a statement of affairs. The people over there are great at finding places you can cut your spending, and at advising which loands you need to tackle first.

chalkie99

superbbb87 wrote: »

I can comfortably afford to pay back the loan

Aarrghh! There it is again! :mad:

paddyrg

Sadly your debt options are removed - but try hopping over the DFW board where you will get ideas and support on getting out of debt the old-fashioned way(!)

RichGold

If you've got down to the lenders of the like of FLM which require a guarantor then you're stuffed really. No high street or decent lender will touch you I'm afraid.

Malky

Consolodation is not the answer. Simple as that. Assuming you can get a loan at 25% APR (unlikely to be so low but just an example), do you think its a good idea turning your current debts of £6500 into what would be close to £11000? Forget borrowing £7500. Do you really need the extra £1000? Whats it for?
You can't borrow your way out of debt I'm afaid.

dealer_wins

chalkie99 wrote: »

Aarrghh! There it is again! :mad:

LOL

The borrower may think he can comfortably afford the payments, but the bank knows he cant.

DCFC79

chalkie99 wrote: »

Aarrghh! There it is again! :mad:

"I can comfortably afford to pay back the loan" is definitely a favouite saying round these parts.

OP if you believe you can afford to pay back the consolidation loan then surely you can afford to pay back the money you owe.

KingElvis

Everyone can "easily" afford the repayments..........that's until something happens, normally a banger related thing but boilers seem to explode at random and roofs falling in are popular.

These things seem to happen to people who have so called "bad credit" than most it seems.

RichGold

superbbb87 wrote: »

I can comfortably afford to pay back the loan

Its usually a phrase to be heard moments before the OP is hoisted by their own petard

Curr946

So you owe friends and family money. Well, time to get new friends