Why am I not being allowed to consolidate my debts?

sizzors

Hi

I found myself in exactly the same position - 27K owing and as had been able to consolidate in the past & I could afford the new loan, couldnt understand why my bank declined. I was told that even tho you intend to pay your debts off with the new loan, they still take into account how much you owe against your earnings I think x 1.5 and only allow the difference. I now understand the main reason why too, because consolidation for most people isnt the answer as I had always done this in the past, paid off debts and run them up again. I had to face up to the fact I could no longer live like this and I entered an IVA which was approved in September. Yes, my credit is shot for a few years and I can no longer get credit, but to me it was what I needed to break the cycle and stop burying my head in the sand. It might be a good idea to get some debt advice and maybe look at other options.

dfitps

What is likely to be the current credit rating of the friend who jointly owns the house, compared to sirwilliam's? How will this change if he either goes on a DMP or simply defaults on certain debts?

That friend might have an interest in you not going on a DMP if it's going to hurt their credit rating because they're linked with you, but I'm not sure how and when it will affect them compared to you simply having a not great credit rating. Would they be a source of borrowing to fix the payday loans? Might they prefer to sell the house and be shot of you as a business partner, perhaps, if they really knew all the facts. Wouldn't that actually solve your short-term debt problem?

Mowgli87

sirwilliam wrote: »

I'll be taking my proof along to the meeting tomorrow... Whilst I appreciate that everyone can say that their job is safe, mine is as close as you can get to ironclad. My employers have told me that they would do anything to keep me with them since I have had several offers to go elsewhere from competitors in the last 12 months. The company is experiencing incredible growth, making investment at a time when others are not. I've been told that I'm a 'lynchpin' within the company and my position is in no way 'at risk'.

I just wanted to point out that I was told the same thing by my employer - they would do anything to keep me, I was indispensable, they were going to raise my salary by 20% etc etc... 6 months later i was made redundant. Nothing in life is certain. You need to make plans to protect the future, not plans based on the future that may not happen.

rising_from_the_ashes

sirwilliam wrote: »

As expected, NatWest declined any type of consolidation. I'm sure banks will all do this, but they also advised strongly against the DMP route since it will ruin my record for six years, starting from zero etc. and that it wasn't yet the right step for me, since I have an asset which means in theory I own more than I owe. Ironically, this asset is also the reason I can't consolidate as they can't take into account that I only pay half the mortgage and are taking into account my own monthly commitment as the full mortgage repayment as any other lender would... Reassuringly, NatWest also told me that there is no way they would recall my overdraft at the moment or try to get rid of me as a customer since, frankly they said, I earn them too much money.

I'm in agreement with the others ....... the bank don't want you to do a DMP because they'll stop making money out of you - sorry but that's the only reason they've said that!

I also wouldn't take the OD not being called in as set in stone as these things aren't decided by one / two people - it will be an automatic review (probably by a computer looking through records!) and although it may not happen this month, it could well happen soon.

If you really want to avoid the DMP, then really the only option is to try to seek help from friends/family - they will be p'd off and probably angry but a lot of that will probably be from you hiding it and not asking for help sooner ..... good luck

flyingchange

Just remember not all DMPs are free and some of the advice you will get will be inaccurate and misleading. If you cant consolidate and you want to go down that route look at charitable debt advice organisations who will do it for free but bear in mind that if you opt for a DMP they are not legally binding and no creditor is compelled to reduce or freeze interest and they can still pursue you. Furthermore, being on a DMP does not give you any protection from the bailiffs. Only formal arrangements made through Court will.