Loan help please!!

Jayhughes

Hi all l hope your all well!

The short story of everything is im looking for an £18500 loan to. Consolidate my credit cards! The spec of the loan I want it £18500 low rate over a about 7 years. But I want the ability to have the flexibility of making over payments! I would love to have the ability to clear the loan earlier! So if I work overtime i can pay extra back with no penalties!

I just don't know where to find it!!

All help greatly appreciated!

Giddytimes

You won't find many fans of consolidation loans on this forum, they are generally a bad idea as people who consolidate, even though they have the best intentions, usually end up running up the credit cards again.

Have you exhausted 0% credit cards? If your credit rating is good then you should be able to transfer your balances around to avoid paying interest and clear the debt quicker.
If your credit rating isn't good it's unlikely any lender will lend you that amount unless you have a very high income or can secure it against your house or other asset, which is never a good idea as your house is then at risk should you lose your income for some unforseen reason.

dealer_wins

Can you comfortably afford the repayments?

poppasmurf_bewdley

You probably don't stand a chance of getting a loan. One check of your Credit File will show the £18.5k balance outstanding on your Credit Cards and they will add that to what you want to borrow, which will equate to £37k. So you will probably need to be earning £74k to even be considered for a loan of that size.

What do you earn?

Jayhughes

Ok basically the loan will clear credit cards and the credit cards are going!!! Have learnt my lesson with all the stress it's causing!!

I have spent ages looking into loan calculators etc I can very comfortably live with the monthly payments, however I am very motivated to pay the debt back as soon as possible through overtime and enhancements!! Although I don't have a good credit history and only earn £19k, my parents are willing to secure the loan for me.

Basically it's all been structured! I just don't know where to find what I want lol!

Thanks for the responses :-)

~Beanie~

You're not going to get what you want I'm afraid. You don't have a good credit history and you are looking to borrow the eqivalent of almost a years salary, on top of which you owe 18.5K on credit cards! A lender cannot be certain that you will actually use the loan to repay your current debts so will just assume that you won't.

If your parents are prepared to secure the loan for you, can't they just take it out in their name?

dealer_wins

Jayhughes wrote: »

Ok basically the loan will clear credit cards and the credit cards are going!!! Have learnt my lesson with all the stress it's causing!!

I have spent ages looking into loan calculators etc I can very comfortably live with the monthly payments, however I am very motivated to pay the debt back as soon as possible through overtime and enhancements!! Although I don't have a good credit history and only earn £19k, my parents are willing to secure the loan for me.

Basically it's all been structured! I just don't know where to find what I want lol!

Thanks for the responses :-)

If your parents are prepared to guarantee it for you, then it may well be better for them to take out the loan in their names. Assuming they have a better credit history than you they will get a much better rate.

And as you already owe nearly your whole annual salary, you will have difficulty getting any mainstream lender to lend you another £18500.00, even with a guarantor.

Jayhughes

Parents will most likely do a joint application between them, their credit is outstanding due to multiple mortgages in the past etc, but it's the type of loan I'm looking for I can't seem to find! :-(

barbarawright

Jayhughes wrote: »

Parents will most likely do a joint application between them, their credit is outstanding due to multiple mortgages in the past etc, but it's the type of loan I'm looking for I can't seem to find! :-(

Because it doesn't exist. Please read up on consolidation loans on the site and then head over to the Debt Free Wannabee board and post an SOA (they'll explain). You really won't get a loan but you can still clear your debts - quite likely much faster than you think if you're determined

Phill_Anderson

Before applying for a loan, you should have good credit rating.

CHR15

Another phenominal insight into the World of finance from Phil Anderson...

Hurry up and start spamming for goodness sake so we can evict you.