Refused credit card now trying loan

toweringinferno

Hi,

I have a loan with nationwide. I applied for a cc with morgan stanley to transfer my existing cc to a 0% rate for 9 months. Anyway, they refused me credit. First time ever I've been refused credit!! This came as a massive shock yesterday.

Anyway, I have about 6k on my existing cc, which I need to shift as now the 0% rate has expired and they're now charging me c. £75 a month interest!!

I called nationwide this morning to arrange a consolidation. They said the application has to go to their other loan team to make a decision, and will get back to me within 48hrs.

The consolidation would take me to owing £16.5k over 5 years.

What happens in they won't let me extend my borrowing? I can't get another cc with a low interest rate, so will have to keep paying up £75 a month interest.

I think the poor credit rating is because I missed a payment by a couple of days before xmas on my other cc (smaller manegeable amount) as I did not receive the statement - I don't have a direct debit coming out to cover the payment. I also have gone over a couple of times on my overdraft in the last 12 months (currently waiting for HSBC to send me my statements to recover bank charges).

I feel like I'm drowning and can't see a way out. I'm on my own, have no one to help me, don't live with a partner to help spread the costs. I feel sick and faint when I think about my situation.

Its not as if I can't afford the repayments on a topped up loan. The repayments would be £322 a month, I currently have about £1800 going in to my account each month.

Help!!

frugalpam

I got into a similar situation myself a few years ago: sometimes consolidating debts is a good idea, sometimes not. I'd investigate the terms and conditions of your existing Nationwide loan, and look at how much interest or what penalties are going to be imposed if you settle that loan early. If you take on another loan with Nationwide, then that's another load of interest charges to take into account. I took out a consolidation loan without investigating all this as I was so desperate, and what I'm going to be repaying is thousands more than I ever borrowed in the first place.
I'm not able to give any solid advice in view of lousy financial management over the years, but all I can advise is to work out how much interest you're going to have to pay and see if it's really worth it.

Pam

jonesMUFCforever

Its not as if I can't afford the repayments on a topped up loan. The repayments would be £322 a month, I currently have about £1800 going in to my account each month quoted from Towerinferno

Stop deluding yourself - you are struggling. Go over to the Debt free wanabee board to make a SOA . You need to tackle the cause of your debt not merely shuffle about and making minimum payments on your card.