Affordability issues with good credit rating

tropicaljones

Hi

A few years back I accumulated significant debts on credit cards (£15,000). The debts are serviceable and I don't miss payments. However, they've been around for some time now and are going down at any kind of rate. I applied for a personal loan which would pay off the debt in 3 years but it was declined because of affordability issues despite the monthly payment being less than I currently pay.

I would be grateful if anyone could suggest a good way of getting round this?

jonesMUFCforever

Where did you apply?
Was it at the bank where your salary goes into and they know your account history?

From a potential lenders point of view there is nothing stopping you spending the money on other things and then you will have £30k of debts.

tell_it_how_it_is

What's the actual current level of debt, and how much do you earn? The lenders will take this into account when making their decision, so it could be that you'll struggle to grab a loan.

It might be worth considering snowballing your debts to pay off in order of interest rate. Perhaps take a look at this calculator HERE to see if it'll help any.

tropicaljones

Thanks. And answers in order are:

I applied at Tesco.
No, it was not at my own bank. They won't offer a second personal loan and my graduate studies loan is with them. That is only £2k now but it's a student loan so it attracts almost no interest. So it may be worth looking if they'd wrap everything.

I have around £17k in debts against a £30k salary.

Do you think it would help if I could get a short term loan from family to clear my bank debt. Would I then be able to get a loan to pay them back if I appeared debt free. I don't like the idea of that going wrong and inconveniencing someone else.

jonesMUFCforever

Why did you not mention this in your first post?