Advice please, trying to get a loan

skintandscared_2

If you really have £600 a month disposable, getting a loan to cover, inter alia, holiday spending money is "laughable". Can't you just live on beans on toast for 3 weeks and have £500 to splurge on holiday??? Why would you increase your credit commitment and pay all that extra interest for the sake of a few beers???!

Vikipollard

"It isnt MORE, its replacement debt ..."

Unfortunately from the lender's point of view, they have no guarantee that you will use the money to repay exsting debts, so it has to be considered as MORE debt.

Good luck, and have fun on the holiday :j

Icikle

When I say disposable, I mean income after bills, not money i can fritter away. Its generally to get me through the month, food, leisure activities, petrol etc etc.

And it isnt increasing my credit commitment, its actually decreasing it, as in ill be paying less through getting the loan. And as it has a fixed repayment schedule, Itll be easier for me to settle, as for some reason i begrudge paying more than the amount the credit card asks for lol, a bad mindset but one i cant shake lol, therefore the credit card could last forever and cost me a !!!!!load in interest.

skintandscared_2

Icikle wrote: »

When I say disposable, I mean income after bills, not money i can fritter away. Its generally to get me through the month, food, leisure activities, petrol etc etc.

And it isnt increasing my credit commitment, its actually decreasing it, as in ill be paying less through getting the loan. And as it has a fixed repayment schedule, Itll be easier for me to settle, as for some reason i begrudge paying more than the amount the credit card asks for lol, a bad mindset but one i cant shake lol, therefore the credit card could last forever and cost me a !!!!!load in interest.

When companies look at whether you can afford an additional loan, they do not factor in your paying off the current loan(s). They have to assume you won't (worst-case scenario) and whether you can afford the whole lot together.

If your £600 disposable is actually for other bills, it's not exactly readily available for another loan repayment is it. My only advice would be to cut back the food and leisure activities for a while and use the excess to get rid of as much debt as you can, and pay for your holiday spends. More debt is not the answer.

Icikle

skintandscared wrote: »

When companies look at whether you can afford an additional loan, they do not factor in your paying off the current loan(s). They have to assume you won't (worst-case scenario) and whether you can afford the whole lot together.

If your £600 disposable is actually for other bills, it's not exactly readily available for another loan repayment is it. My only advice would be to cut back the food and leisure activities for a while and use the excess to get rid of as much debt as you can, and pay for your holiday spends. More debt is not the answer.

It doesnt take £600 to do those things but, basically what I am saying is, I feel hard done by, I am not a flight risk and have an excellent credit report from 2006 to back this up; I have the affordability, and without altering my lifestyle I would like the option of a loan, to HELP me get some holiday money without, like i say, digging into my existing funds and altering my lifestyle. If everyone could just do it from the money they had there would be no need for personal loans in this world then would there.

Now you have explained why the lenders are looking at it like they are, which is fair enough, but if they dont assume I will use it for consolidation, why do they ask in their application "what is the loan purpose" with consolidation as a dropdown choice. THEN when you get further they ask you to breakdown the debt you will be consolidating...pointless?

maginot

Icikle wrote: »

When I say disposable, I mean income after bills, not money i can fritter away. Its generally to get me through the month, food, leisure activities, petrol etc etc.

And it isnt increasing my credit commitment, its actually decreasing it, as in ill be paying less through getting the loan. And as it has a fixed repayment schedule, Itll be easier for me to settle, as for some reason i begrudge paying more than the amount the credit card asks for lol, a bad mindset but one i cant shake lol, therefore the credit card could last forever and cost me a !!!!!load in interest.

But it is increasing your credit commitment, there is no way anyone can force you not to use your credit cards again. Therefore racking up the same debt as you did previously (that's if you used the loan to pay off debt, because again the loan company cannot enforce this).

You need to just use any extra cash to pay off your most expensive debt and eventually your debt will reduce and start freeing up more cash to you.

somethingcorporate

Pretty pointless nowadays, consolidation unless it is clearing existing debts with the same back, will get kicked back given the track record of borrows "consolidating" only to run up the debt all over again and now having twice as much.

meer53

Icikle wrote: »

It doesnt take £600 to do those things but, basically what I am saying is, I feel hard done by, I am not a flight risk and have an excellent credit report from 2006 to back this up; I have the affordability, and without altering my lifestyle I would like the option of a loan, to HELP me get some holiday money without, like i say, digging into my existing funds and altering my lifestyle. If everyone could just do it from the money they had there would be no need for personal loans in this world then would there.

Now you have explained why the lenders are looking at it like they are, which is fair enough, but if they dont assume I will use it for consolidation, why do they ask in their application "what is the loan purpose" with consolidation as a dropdown choice. THEN when you get further they ask you to breakdown the debt you will be consolidating...pointless?

Consolidating debt these days usually results in the closure of accounts or removal of overdraft facilities at the least. Would you be happy to consolidate if that was the condition ?

It would depend on your "disposable" income of course but you seem a bit confused as to what "disposable income" actually means.
What are you actually left with per month after you have deducted everything, including living expenses like food, petrol,clothing etc ? You say you have plenty left, but how much is it ? Have you actually sat down and worked it out ?

If you have to consider a loan for a holiday, then you can't afford one.

Tixy

Icikle wrote: »

as for some reason i begrudge paying more than the amount the credit card asks for lol, a bad mindset but one i cant shake lol, therefore the credit card could last forever and cost me a !!!!!load in interest.

I'd simply try changing your mindset - your absolutely right that paying off just the minimum payment will cost you shedloads in interest, which is why its crazy to only pay the minimum if you can afford more.
Additionally if you only pay the minimum this is marked on your credit file and is generally considered to be a negative - just paying a few quid more gets rid of that marker. Although obviously its better still to pay a lot more as you can afford it.

Icikle

Well, I have worked out that taking into account EVERYTHING, I have about 280 quid to dispose of per month. I fail to see the point in this other than to work out my own personal knowing of affordability, which i already knew, as the lender cannot possibly know this information.

Mer my existing loan will be paid off in 7 months, Im going to up the payment I make to my credit card each month. Bobs my uncle.

And to the cretin (I jest) who said I cant afford my holiday, its paid for, just could do with a windfall in terms of spending money as its Las Vegas :P