How do i get a debt consolidation loan when...

stuartjl

..the reply i get is that my loan has been declined due to high debt i.e. my 9k credit card debt im trying to consolidate. this is going to be paid off with this loan??

Not sure how to progress?? do i just let it increase and go bankrupt, beginning to think thats the option.

RAS

You will not be paying of the debt.

Starting point; put up and SOA on here and we may be able to help you work out how to pay it off, rather than just transferrign the debt to aanother and less flexible form.

And explore the snowball on www.whatsthecost.com

taffy056

Most consolidation loans fail miserably, the reason is that six moths down the line you will have maxed out the cards again and are coming here with double the debt you are in now. Make an SOA here and lets see what people can do to help.

stuartjl

RAS wrote: »

You will not be paying of the debt.

Starting point; put up and SOA on here and we may be able to help you work out how to pay it off, rather than just transferrign the debt to aanother and less flexible form.



Whats a SOA?

Hovel_lady

stuartjl wrote: »

Whats a SOA?

A statement of affairs link below.

Format for MSE at the end and take out any links before posting here.

http://makesenseofcards.com/soacalc.html

stuartjl

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 114
Rent.................................... 460
Management charge (leasehold property).. 0
Council tax............................. 71
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 53
TV Licence.............................. 13
Satellite/Cable TV...................... 60
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1356


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3000.....(114)......7.99
Total secured & HP debts...... 3000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
bc.............................9000......133.......15.9
h..............................1225......30........27.9
tesco..........................600.......40........18
pal............................900.......30........22
Total unsecured debts..........11725.....233.......-


Monthly Budget Summary
Total monthly income.................... 1,600
Expenses (including HP & secured debts). 1,356
Available for debt repayments........... 244
Monthly UNsecured debt repayments....... 233
Amount left after debt repayments....... 11

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -3,000
Total Unsecured debt.................... -11,725
Net Assets.............................. -14,225

DVardysShadow

stuartjl wrote: »

Statement of Affairs and Personal Balance Sheet

....

OK, my take on this is that your head is just about above water and a consolidation loan might take you under, because it is very inflexible and puts you on a treadmill of high monthly repayments, whereas cards are more tolerant.

Ideally, you need to both increase your income and cut your expenditure, to generate surplus cash. This should go to paying down your debts. A useful tool to help is the snowball calculator http://makesenseofcards.com/snowcalc.html.

The normal rule is to pay down the highest APR debt first. In your case, as you have so little headroom, I suggest you put your efforts to paying down the 600 credit from Tesco - this will be paid off in about 18 months, but the sooner you get this paid off, the sooner you cut yourself £40 of slack. After that, start paying down the debts highest APR first.

As an aside, I am wondering what you have £3000 of debt secured on as your assets amount to just £500.

camuk81

Couple of things here, Can you the council tax onto 12 rather then 10 months, are you getting the single occupancy rate?

Can you cut back on the fuel this seems very high?

Also can you reduce your contract do you know the renewal date are there better offers out there?

stuartjl

The 3000 loan is from a car i bought in 2005, the end of that year i became ill. So had to ask for lower payements the loan was originally 7000. My barclaycard is so high because i was ill for 3 years and had not assets. So used the card and the first job after was low paid. in the last year or so i have been earning 1600 per month.

stuartjl

camuk81 wrote: »

Couple of things here, Can you the council tax onto 12 rather then 10 months, are you getting the single occupancy rate?

Can you cut back on the fuel this seems very high?

Also can you reduce your contract do you know the renewal date are there better offers out there?

Ive put one occupent initially but at the end of this month i will be moving in with my girlfriend.

fuel cost is from where my girlfriend wont move here with me so i have to move to her and commute back and forth.

princess*daisy

Hi,

You should be able to cut back on the grocery bill. I spend £120 per month on two adults and we have delicious meals so it is do-able. If you live on your own, you will benefit from using frozen meat/veg, cooking in batch & freezing meals, taking leftovers to work for lunch etc. Meal planning and cooking from scratch really does help, have a look on the Old Style boards for recipe ideas. We tend to shop in Farmfoods (or occasionally Iceland) for basics (meat, bread, frozen veg etc), which is the bulk of our shopping and then get everything else from Morrisons.

Good luck!