Fell at the 1st hurdle - Why?

cherrybuns

I am not an angel with money, I am overdrawn in my two current accounts and I have a credit card with £2200 and 2 store cards with less than £300 each and I have a loan with a settlement figure of £7462. I pay everything each month by DD and haven't missed a payment for 8 mths, my credit score is an excellent 999, so why was it when I applied for a loan this weekend I was only offered £9000 to help towards consolidation and then tried another company within a few hours and as soon as I answered the arrears question he said that the "computer said no" and couldn't give me a reason.

I know not to try asking for any more credit for at least 3 months, but why is it that I want to pop all my debt in one basket to improve my life and have a mangable monthly payment and I'm not allowed. I am trying but feel that I am losing a fighting battle. I've been to national debt helpline and I was made to feel 2" high and had a young lad telling me that I was wrong in my suggestion and all I wanted was a bit of sympathy then to work with me my possible solutions. I know that being £13,500 in debt in the grand scheme of things is not a lot but I hate it, I hate very much.

My partner is great but he can't help me at the moment, which I wouldn't want him to.

Sorry to rant but I'm trying to improve my finances, but I just needed to get this off my chest, is there any options for my problem that I haven't thought of yet?

Thank you in advance.

Cherrybuns

Ali.Rosen

Cherrybuns. Sorry i can't offer you any advice but i know how you're feeling. I'm about the same amount as you in debt. I have just been offered a new (once in a lifetime) job (not much more money though) but now i need to consolidate my loans/credit cards to have one lower payment so I can afford relocate and rent down in london.

I feel like i don't know where to go for help, I was refused a few loans a few months back when i tried to sort it then. Now i'm scared of reapplying because i feel i'll just be turned down again.

Where do you go for advice hey! I'll keep an eye on your post to see if anyone can help.

Take Care x

Rafter

Cherrybuns,

Your credit rating and payment history are irrelevant if the computer thinks you already have enough debt based on your salary and regular outgoings.

The big banks are expected to write off about £7billion of debt in 2006 from people who have gone bankrupt or entered IVAs so they are a lot more cautious than they used to be.

Depending on the rate you were offered on the £9000 that may be your best option for now and at least that takes care of most of the credit card bills and your current loan.

You really should try to clear (and cut up) the store card, as presumably that is at a nasty APR.

The debt free wannabe board should give you loads of tips about money saving and paying back what you owe faster. Have you switched your energy bills recently for example? Are you on a good phone tariff?

Good luck

R.

cherrybuns

Thanks for your prompt reply.

Aren't all store cards attached to a horrible APR?! My Next account is worse, my B&Q card is a lot better especially for very similar amounts owed, but the basic each month is a difference of about £22. I plan to close the next account down, but they won't do that until I have cleared my account.

In the last few months I have reduced or changed my home bills, cancelled DD etc to the point where it won't benefit me to change. That was one of the first things I done, but thanks for the advice.

I'll pay a visit to the debt wanna be board when I have plenty of time and a cup of tea in hand!

Cherrybuns

Milky_Mocha

cHERRYBUNS what rate were you offered on the 9k? I remember when I applied for a loan with Cahoot, I applied for 12k and they only gave me 10,500. This was in spite of a faultless credit record and plenty of credit history, good salary, etc. Sometimes I think its simply their policy to grant a percentage of what you ask for. I didn't mind too much as the rate was 5.8%.

AMILLIONDOLLARS

Cherrybuns why don't you go over to the debt free wanna be board. They are very good with helping people with their finances and help them out of debt without resorting to a consolidation loan, which is not solving the initial problem but extending the debt instead. There's lots of good advice on Snowballing, ie. Initially throwing spare money at the highest Apr debt first, paying that off then move onto the next highest, and money saving tips.

Give DFW a try before borrowing any more money and digging yourself in a deeper hole

AMD