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Easier to obtain a loan from bank branch?
Hi
Been lurking the boards for a while but never joined but I need some advise. . .
After a few years of foolish spending if managed to get myself into stupid debt of around 15,000 (around 6 creditors). I've been making the minimum payments but generally respending the credit and once against incurring more interest. I decided to try for a 5 year loan and repay the debt with it and as a result end up debt free in 5 years ( no I won't continue spending). Unfortunately my credit rating is now too bad to get this. I'm just wondering if I had an appointment with my branch would I be more likely to get a loan for this? I have a average salary which can easily meet repayments for a 5 year term 15k loan (the repayments would be less than the minimum payments on my CCs now).
Been lurking the boards for a while but never joined but I need some advise. . .
After a few years of foolish spending if managed to get myself into stupid debt of around 15,000 (around 6 creditors). I've been making the minimum payments but generally respending the credit and once against incurring more interest. I decided to try for a 5 year loan and repay the debt with it and as a result end up debt free in 5 years ( no I won't continue spending). Unfortunately my credit rating is now too bad to get this. I'm just wondering if I had an appointment with my branch would I be more likely to get a loan for this? I have a average salary which can easily meet repayments for a 5 year term 15k loan (the repayments would be less than the minimum payments on my CCs now).
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Comments
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With your bad credit, no one is going to lend you money, especially your bank.
Even if you had a good credit rating, You can use this simple formula to work out how much you can realistically expect to borrow.
Divide your annual salary by 2 and take away your existing debt from this figure. What are you left with?0 -
a lender will in general see your debt as the sum of your existing debt plus the new loan; so in your case they will assume a 30k debt;
you may intend to pay off the other debts but you have no obligation to do so.
they would be looking at an income of over 60k to risk such a loan.0 -
Thanks for the info. 30k salary don't leave me anything then! Would a secured loan against a mortgage free property make a difference?0
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It prob would but it would be a very bad idea so please don't even consider it.
If you earn 30k and don't have a mortgage why can't u just knuckle down and clear the debt?0 -
Google snowball calculator to work out how much it will cost and how long it will take to clear ur debts by making the minimum payments compared with say £500 a month!
Also head over to the debt free wannabe part of the forum for some advice on how to clear your debts and rebuild ur credit rating0 -
It's a property with someone living in it which I can't sell right now. I'm paying rent (£550) for the apartment I live in.0
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you would in principle, be able to get a BTL mortgage on the property but make sure you clear the debt and don't run up any new ones
there is probably a minimum mortgage however so make sure you get one that would allow you to 'overpay'
see a mortgage advisor0 -
So do u not get rent from the mortgage free property?Still only making the minimum payments or taking out a secured loan are BAD ideas! You should be paying off as much as you can to try and clear these debts that I'm guessing have very high APRs? Head over to debt free wannabes page and post an SOA for some advice on how you can free up some cash to clear ur debts. Good luck0
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