loan to consolidate but we are not being accepted!

lisaloo1985

I wondered if anyone could possibly help.

Me and my partner are looking to get a loan to consolidate our credit cards as we are now paying interest.

We brought a house 2 years ago and have completely renovated it, we have tried to bank roll this ourselves but have also spent a lot on credit cards using the special offers of 0% on purchases etc.

We do not have a bad credit rating and we have never defaulted on a payment but we do have a lot of credit.

We are looking to get a loan to consolidate the credit cards but are finding it difficult for anyone to accept us.

Does anyone know of any loans that would be suitable for us?

Thank you.

Tixy

If you are struggling to be accepted based on affordability and the amount of outstanding debts/credit you already have and have tried several lenders then it may be difficult for anyone to be able to come up with other unsecured lenders.

What are you current existing debts?
Do you owe a signficant proportion of that to any 1 lender?

How much are you looking to borrow?
Who have you applied to for loans and been declined by?
Have you been applying in joint names or individually?

How much do you both earn?

If your renovation work has significantly increased the value of the property you may want to consider borrowing more on your mortgage secured on the house. Whilst this isn't generally advised for debt consolidation if your house has significant equity - and if you can and will pay off the debt in a relatively short timescale (ie not over the rest of the life of your mortgage), then this could work out cheaper for you (assuming you cut up the cards / don't run them up again).

m_sinclair

Apologies to join, but this is almost the exactly same circumstances my wife and I find ourselves in.

We have several credit cards, totalling some 25k dept (spent on wedding, holidays and living expenses rolling on from when we first moved in together 5 years ago on significantly lower salaries than now and had a 100% mortgage). The value of our property has not moved much and we prefer not to release equity, as we seek to move up the ladder and any desposit on the next purchase will come solely from selling our current 1 bed flat.

All in, salaries are 60k + 37k. However our current bank (mortgage and joint account for bills etc) will not give a loan as the credit card debt is from different providers, and they cannot be sure the loan will go on the cards, so they treat the monthly outgoings on the current cards in addition to the outgoings on a new loan. I appreciate their view, but what else can we do? My bigger salary goes into a different bank/current account (unable to move as I fall into my agreed overdraft frequently), so our joint bank is also not assured of combined salary funds in covering the loan.

We are (now) trying to be responsible and consolidate debt into a 5 year loan - which is more than affordable for us. If the banks wont help, what to do?
We have tried a seperate loan provider now too, but rejected. We dont want to ruin our credit history by trying several others in succession.

Any ideas?

[Deleted User]

yes;you have a joint income of £97k and debts of £25k and live in a one bed flat.throw as much money as you can at repaying your existing debt and forget consolidating,with your income:debt ration you should be able to pay it all off in 18 months

de1amo

The op needs to reveal the same sort of detail?

chalkie99

m_sinclair wrote: »

All in, salaries are 60k + 37k.
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I fall into my agreed overdraft frequently

Sorry, but that is obscene.

You need to get a grip on how you [STRIKE]squander[/STRIKE] spend your money by going over to the Debt Free Wanabe board and looking up how to post your SOA so that you can actually see and understand where your money is really going.

The people there will soon point out where you can make some savings. Shunting your debt onto another loan is not the answer.

Hazzinho

Lenders don't see loans as consolidation they see it as extra debt as there is nothing stopping you spending it. So when you apply to consolidate it's debt amount plus loan amount. If the total is over 50% your annual wage you are high risk.

somethingcorporate

You may use any consolidation loan to pay off your enormous credit card but then you have a loan plus a massive unspent credit limit and can just rack up the debts all over again, except you now have an additional large loan repayment on top.

You need to cut back and pay off your existing debt not look at using more debt as it will likely not work.

jimbob43_2

I was in the same boat as the OP and M-Sinclair,
Re-Mortgaging was the only way we could do it, and we struggled to get that.
Luckily debt + exsiting Mortgage came to 80% LTV.
Any more and we'd have been knackered!
No more loans/CC's for us , Cash all the way:)

rising_from_the_ashes

jimbob43 wrote: »

Re-Mortgaging was the only way we could do it, and we struggled to get that.
Luckily debt + exsiting Mortgage came to 80% LTV.

mmmmm but how many years is it now taking to pay off the debts ....... how much interest will you pay over that time ...... sorry, but not the best way to do it

jimbob43_2

rising_from_the_ashes wrote: »

mmmmm but how many years is it now taking to pay off the debts ....... how much interest will you pay over that time ...... sorry, but not the best way to do it

Take your point, but for us it was either re-mortgage and have lots of spare cash now, or struggle with minimum payments for years! All my fault of course and lesson definatley learnt!