Consolidation - Credit Card transfer fail

chrisndebs

Hello People, would like some advice please.

Have just under 16k over 3 credit cards and nearly 6k on a car loan. These debts have gradually increased over the last 3 years due to work and family issues, nothing glamorous at all, don't even own a flat screen tv! Just the ups and downs of life which we all have now and then.

I used to own property but sold this to self fund training for a new career which due to the financial climate became untenable. I never missed a loan payment, always had a good rating I assumed.

I now live with my partner and the property is in her name, so have no fixed assets as such. She has a DMP which finishes in August of next year so cannot assist.
I am however now in a position where I would like to consolidate all the cards into one loan and reduce the interest.

Currently I am paying the minimum on each of the cards and the required amount on the loan. All payments have been met and there have been no defaults nor CCJ's lodged against me.

So, did the Experian thing - it came back with a score of 810 and a fair rating.
1. Went for a Sainsburys loan to cover the cards, it was declined.
2. Went for a Nat West CC balance transfer to clear most expensive card and run at 0% for 20 months, it was declined.

I am given to understand that if you receive 3 refusals within 6 months it affects your credit rating, having gained 2 refusals in less than an hour I am concerned as to what my next move should be.

I am all ears as they say.

Thanks, sorry it was such a long read!:o

BoGoF

Not clear from your post if you are currently earning.

What is your income?

Tixy

Its not 3 declines that are an issue - its that lots of applications close together indicate an issue or desperation.

So in total you owe around £22k. And what amount of loan did you apply for?

Remember that lenders take into account far more than just what is on your report.
Are you employed? how much do you earn? how long have you been in current job?

chrisndebs

Yes I'm in full employment, not a massive wage, 18k.

BoGoF

Your chances of borrowing money (at sensible rates) are virtually zero.

Debts of 50% of your salary have alarm bells ringing with lenders. You owe more than your annual salary.

chrisndebs

Applied for a loan to cover the cards - so 16k over 5 years, the car loan is on a good rate so not too concerned. Have only been with this employer for 6 months, last employer 1 year 11months, before this 3 year study leave and employment with the reserve forces, before that un broken employment since I was 16. I am 44 now.

Tixy

Your problem will be affordability - no new potential lender will believe you can afford to service that level of debt on top of what you already owe (they probably think you are already struggling to service it on that salary especially as you are only paying minimum payments).

You may want to consolidate but they have no guarantee that you will use the money for that, or that you won't run up the cards again, so they assess worst case that you end up owing £38k on a salary of £18k - they won't think its possible for you to meet the repayments - and so much too high a risk of you defaulting on payments.

ejc81

chrisndebs wrote: »

Currently I am paying the minimum on each of the cards and the required amount on the loan. All payments have been met and there have been no defaults nor CCJ's lodged against me.

So, did the Experian thing - it came back with a score of 810 and a fair rating.
1. Went for a Sainsburys loan to cover the cards, it was declined.
2. Went for a Nat West CC balance transfer to clear most expensive card and run at 0% for 20 months, it was declined.

Just wondering who you already have cards with and who you hold your main current account with?

I'm just thinking that sometimes your own bank is more willing to lend than a bank you don't hold an account with.

chrisndebs

Yes it seems to be the case Tixy, at this present time we are just beginning to establish some financial stability, so simplification of the debt situation would have been ideal. It doesn't look like that will be the case though. I guess we will have to continue stomaching the interest payments and keep chipping away at the debt. it's going to be a long journey.

Still got my health though!

Thanks for the advice - much appreciated.

chrisndebs

The interesting thing was that on my credit report, despite informing them no mention was made of my current account. I may go to the bank and ask for a loan!

Tixy

Might be your current account appears on one of the other agencies files (experian/equifax/callcredit)?

You obviously know about DMPs if your partner is on one? is it something you've considered for yourself? Obviously depends on whether you be suitable and whether you can meet current repayments without reusing credit each month. Maybe worth getting some advice from one of the debt advice charities? If you do consider a DMP make sure its a free one with one of the charities.