Loan Affordability calculations

moresensethanmoola

Hello everyone being a normal chap and potentially banging my head against the bank wall I have dropped by for a bit of advice.

Basically I have under £13k of debt £4k of which is what remains of my student loan. New year and all that so I wanted to consolidate all but the student loan and get a new car to polish at the weekends when it isn't raining/snowing/brimstoning (so about twice a year).

I currently bank with HSBC which is who have all but about £900 of the above debt with in the form of a credit card and personal loan. I started to go through their online application tool for a new personal loan to consolidate everything and have enough over to get a car and the computer said at the affordability calculation stage that I could not afford it.

I understand that the criteria may have changed in the last 30 months but without going into too many details after taking living expenses, rent, food etc... into account I had a monthly surplus of around £1000 on which the monthly repayment for the loan I was looking for was £350.

When I took out the original loan I had much less disposable income so to my layman's eye that I am asking for a loan that is only £20 more a month than the current one at a time when I have more disposable income and computer says no.

With this being the case my only assumption is that I need to go into a branch and sit down with a person with my last 12 months bills, statements, credit report and pay slips and show them that I can afford the loan and in fact are already affording one from them right now.

Is this worth doing or will they just put the numbers into the same calculator and look me blankly in the face and say "computer says no"?

Thank you very much for reading.

p.s. Having gotten my credit report it all looks correct and shows that there are no defaults, no ccjs and everything has been paid on time since 2006 which was when I left University and it doesn't go back any further.

opinions4u

after taking living expenses, rent, food etc... into account I had a monthly surplus of around £1000

Instead of living in debt, has it crossed your mind to save up for things?

That £1,000 a month could be used to get you debt free in little over a year. In another year you'll have more than enough to spend on a half decent brand new car.

You already owe £13k and want to increase it further. At what point will you stop borrowing more and start reducing your debts?

Take this as an opportunity to change your mindset to money and debt.

Apples2

You need to look again at your figures. If you had even half of 1k a month spare you wouldnt be in this debt.

Add it up again properly and see where you are wasting so much each month, you may not even need a loan.

Andystriker

moresensethanmoola wrote: »

HBasically I have under £13k of debt £4k of which is what remains of my student loan.

but without going into too many details after taking living expenses, rent, food etc... into account I had a monthly surplus of around £1000

Pay off your debts with the £1,000 surplus and then save up for the car.

We really do need better financial education in our schools today

dealer_wins

LOL at £1000 a month surplus and £13K debt.

Back on planet earth the fact you have debts mean that at best your monthly surplus is zero, but quite probably - a few hundred.