Why am I not being allowed to consolidate my debts?

katsu

You could try a credit union - they lend to people to get them out of the pay day loan trap. I doubt they will lend enough to cover all your PDLs but it might give you some breathing space? Google Credit Union <your town> and contact them.

Where did all the money go? Can you sell on ebay, at cash converters etc whatever you bought in order to clear a couple of PDLs?

See if anyone in the family can help you with paying off a couple of PDLs to get you back in the black? It is really that or defaulting.

Also, if the mortgage with your friend is joint then your finances will be linked and so your credit record affects theirs. I appreciate telling the folks will be hard but might be better to see if they can help you get out of the PDL trap and avoid the defaults?

katsu

sirwilliam wrote: »

Will defaults automatically land me in court of get me CCJs?

No. If you default then you could be taken to court and could get a CCJ but it doesn't happen all the time. Some people don't get taken to court at all, some it happens some time after they default. Read the Debt Free Wannabee boards and see what has happened to people on DMPs for more info.

Defaults come off your credit file after 6 years.

camuk81

Brilliant Sir William,

Since it is had the value I presume there is no option of interest free on the mortgage?

How is your credit rating elsewhere, the apr on the credit card could be an option to shift to 0%.

Now please note I'm trying with the below to think creatively, sir william has stated he does not want to go down a DMP or default scenario. So this my own personal think outside the box. Please note this is not a long term fix. This is only an emergency measure.

1. Ask for a temporary increase in overdraft and asking to repay the monies in 6 month. however be warned the bank may pull all credit facilities.

2. Do you have any money left on the visa or is it all up to the limit.

3. Would merging the natwest loan's create a cheaper monthly payment however please be aware they may very well want merge the credit card into that as well.

As Dorset girl has stated payday loans damage your file. You have two years to start planning ahead. You may well take a hit now, but reducing the available lines of credit and repayments made this may help.

I.e. my file looks horrible i have 3 searches to wonga and a few in overdraft which my bank reports as late payments. I have 4 credit cards and one catalogue and until this month all were minimum repayments.

My personal aim is to get the amount owed to less then 30% to each creditor.

My score sits at 342 however if I work hard I'm hoping in 1 year to get debt free. It might kill me but thats the plan!

camuk81

Please be aware though some banks view defaults as bad as a ccj! Oh joy!

Crunchy_Nutter

sirwilliam wrote: »

Which lender did you find to provide a consolidation loan?

We're going back a few years - Citifinancial (no longer do loans in the UK I beleive), and Lloyds TSB - can't remember exact values or which one was first - one was around 3k, the second about 5k, and neither paid everything off, just gave me enough breathing space - until i spent again - but this was well before the recession when credit was much easier to obtain - even on the minimum wage I was on at the time.

I just wish I had learned the first time - I'm only just facing up to what I need to do to sort myself out.

As others have said - past experience has shown the banks that consolidation rarely works - and given that they are being more cautious with all lending, you are unlikely to be able to use this option.

If you are given some leeway by the bank, and you are committed and disciplined enough to stay out of trouble, great. On the other hand, if the bank says no, a DMP is going to be better in the long run even if it does screw up your credit rating for a few years (which defaults and arrears will do anyway.

Please don't think I'm being judgmental - I'm 30 now, and I've been in debt since I was 18 - when banks and lenders were falling over each other to throw credit my way. I've been in your position, and it ain't nice.

Once again, the best of luck whatever course of action you take.
Crunchy

meer53

camuk81 wrote: »

Brilliant Sir William,

Since it is had the value I presume there is no option of interest free on the mortgage?

How is your credit rating elsewhere, the apr on the credit card could be an option to shift to 0%.

Now please note I'm trying with the below to think creatively, sir william has stated he does not want to go down a DMP or default scenario. So this my own personal think outside the box. Please note this is not a long term fix. This is only an emergency measure.

1. Ask for a temporary increase in overdraft and asking to repay the monies in 6 month. however be warned the bank may pull all credit facilities.

2. Do you have any money left on the visa or is it all up to the limit.

3. Would merging the natwest loan's create a cheaper monthly payment however please be aware they may very well want merge the credit card into that as well.

As Dorset girl has stated payday loans damage your file. You have two years to start planning ahead. You may well take a hit now, but reducing the available lines of credit and repayments made this may help.

I.e. my file looks horrible i have 3 searches to wonga and a few in overdraft which my bank reports as late payments. I have 4 credit cards and one catalogue and until this month all were minimum repayments.

My personal aim is to get the amount owed to less then 30% to each creditor.

My score sits at 342 however if I work hard I'm hoping in 1 year to get debt free. It might kill me but thats the plan!

Camuk, you're doing the right thing by trying to get yourself back into the black again, BUT, can you honestly see Sir Williams bank agreeing to an increase in his overdraft ? I think it's too late for that now don't you ? I think you're spot on by saying they will probably want to remove all available credit. Same with getting a 0% credit card to transfer any balances.

I think that if Sir William takes a few days to think about whats been suggested here regarding the DMP, he will probably realise that thats his best option. Yes, it will be embarrassing for him to admit to everyone but as someone else has already mentioned, if he has a joint mortgage, it's only a matter of time before it's out in the open anyway as he will be financially linked to the joint party for credit file purposes anyway. If they apply for any credit, he may be forced to own up sooner rather than later.

Good luck with your 1 year debt free plan ! Think how fantastic you'll feel when that day comes ! You should throw a party

camuk81

And you're all coming to gate crash! Meer you are totally right! My bank have just done this to me and agreed to a loan but no new debts so a new loan for 1k while my credit card and 2 overdrafts go! In the grand scheme at the bottom of my signature doesn't mean much! Its forcing me to get on the straight and narrow.

Its an option to discuss with the bank manager hence my big disclaimer at the top. Slim to none of any of the above working or being viable however sometimes when you can't see the wood for the trees it helps to take a step back and look at everything else!

Sir william, fingers crossed for the bank manager. Let us know how you get on, and just remember and help or advice let us know. You've accomplished so much in just a few short posts already

william2074

beachie wrote: »

I see the majority of your shortfall is because of the Wonga loan because it says you will pay back £1200 this month from a total of £1200.

Is this correct? If so then next month your outgoings should come down substantially and you can start having break even months, although you need to ensure you don't rack up any new loans.

If you want to buy something then wait until you receive your bonus, then spend a little on what you want and put the rest towards to the debt.

In a way, yes... but the problem is coming up with the £1,200 to cover that cost!

william2074

camuk81 wrote: »

Brilliant Sir William,

Since it is had the value I presume there is no option of interest free on the mortgage?

How is your credit rating elsewhere, the apr on the credit card could be an option to shift to 0%.

Now please note I'm trying with the below to think creatively, sir william has stated he does not want to go down a DMP or default scenario. So this my own personal think outside the box. Please note this is not a long term fix. This is only an emergency measure.

1. Ask for a temporary increase in overdraft and asking to repay the monies in 6 month. however be warned the bank may pull all credit facilities.

2. Do you have any money left on the visa or is it all up to the limit.

3. Would merging the natwest loan's create a cheaper monthly payment however please be aware they may very well want merge the credit card into that as well.

As Dorset girl has stated payday loans damage your file. You have two years to start planning ahead. You may well take a hit now, but reducing the available lines of credit and repayments made this may help.

I.e. my file looks horrible i have 3 searches to wonga and a few in overdraft which my bank reports as late payments. I have 4 credit cards and one catalogue and until this month all were minimum repayments.

My personal aim is to get the amount owed to less then 30% to each creditor.

My score sits at 342 however if I work hard I'm hoping in 1 year to get debt free. It might kill me but thats the plan!

Thanks, you've been really helpful and friendly. I forgot to mention my credit score. Latest ones are:

CallCredit - 805
Equifax - 805
Experian - 819

william2074

katsu wrote: »

No. If you default then you could be taken to court and could get a CCJ but it doesn't happen all the time. Some people don't get taken to court at all, some it happens some time after they default. Read the Debt Free Wannabee boards and see what has happened to people on DMPs for more info.

Defaults come off your credit file after 6 years.

I'm worryingly ignorant about this... so if a PDL company didn't agree with a repayment structure through a DMP, I would default by not paying them the previously agreed amount? Or even if a PDL company agreed with a DMP repayment plan, I would still default as the sum isn't what was agreed in the initial credit agreement?