Consolidate 14k Halifax cc to Halifax Loan. Bank say no.

Monkey2401

Hi,

I am after some advice. I have a 14k credit card with Halifax. It started off at 1k and every 6 months they gave £1k as I was always paying the minimum. Before I knew it I was up to 14k and they stopped. I earned 15k and i guess they didnt want to push it up anymore. Since I have been in this position which is about 5 years. I have only ever paid off the minimum monthly payment which is about £300.00. I guess by now I have paid over 14k in interest.

Im not one to default as although im not happy with the way they kept giving me the money knowing that I was not treating the credit card correctly, I still spent it.

My issue is that I have gone to the Halifax who has been my bank for 15 years and asked that they transfer the 14k on the credit card to a loan so I can at least start to pay it off. I have advised that as I owe them the money they dont put anything in my account, they just transfer from one account to another, but that was far to easy. Due to the amount I earn and the amount I am requesting the computer says no as they did it as a normal loan request. I understand why it says no, but what I cant understand is why they cant do it as I alredy owe them the money. To me they know they are making £300 per month and have me between a rock and a hard place and they know it.

I have been rejected 3 times in the last 3 years.

Is there anyone that can help or give some advice on what I can do that would be really helpful as at the moment im close to telling them what they can do with the card and the debt.

[Deleted User]

If the APR on the loan is roughly the same as the CC you just need to make the same payment you would if you had a £14k loan towards the CC.

Simples

opinions4u

The problem you have is that if you repay the credit card with a loan you then have an available limit of £14k on the credit card.

When exposed to a line of credit in the past you have treated it much as a child running to the sweet shop with his pocket money and simply blown the lot.

Your lack of sef-discipline in the past, if repeated, leaves you with an easy route to a total of £28k in unsecured debt. And there is always the risk of you getting additional credit elsewhere.

The bank has, quite wisely, decided that isn't such a good idea. The good times stop at £14k.

I am after some advice. I have a 14k credit card with Halifax. It started off at 1k and every 6 months they gave £1k as I was always paying the minimum. Before I knew it I was up to 14k and they stopped. I earned 15k and i guess they didnt want to push it up anymore. Since I have been in this position which is about 5 years. I have only ever paid off the minimum balance which is about £300.00. I guess by now I have paid over 14k in interest.

just for clarity, they didn't give you £1k every 6 months. They increased your credit limit. Utilising the new higher limit is optional. It is not a requirement.

Im not one to default as although im not happy with the way they kept giving me the money knowing that I was not treating the credit card correctly, I still spent it.

In what way were you not treating the card correctly. You borrowed. You showed an ability to repay. A perfect money making opportunity for a profit making business.

Is there anyone that can help or give some advice on what I can do that would be really helpful as at the moment im close to telling them what they can do with the card and the debt.

But you just said that you're not one to default.

Increase the amount you pay. The debt comes down faster that way.

Macca83_2

Tough call. The advisor has to prove that the personal loan Will put you in a better position than the credit card. This can be done by showing that a loan would have a better interest rate or lower monthly payments. You also have to show that you're seriously trying to pay the credit card off. This means no further spending on your card. Only regular credits.
When you previously applied for the loan did you get an automatic decline or did it go into refer and a decision sought from the underwriters? The underwriters are getting notoriously stricter in their lending and you really need an advisor who would be willing to go into battle for you. They Will only do that if it improves your circumstances.

Macca83_2

oh! And If a loan was approved the underwriters would insist on the closure of your credit card and a strict flag placed on your account to prevent further lending with the Halifax. You would not get to leave the branch until it was done.

Monkey2401

Thanks for the replies. In reply to Opinions4u, I wouldnt want the credit card. The card has been cancelled and closed for the past 5 years. So all I am asking is instead of lending me the money via card, why cant they lend it via a loan? Its because they want the £300 per month profit, instead of a % of that coming off the amount I owe.

I currently live with my wifes parents and have done for 9 years. I have not moved out because I do not want this debt over my head when we start out on our own and as I see no way getting past it at the moment it is a huge problem and affecting my life and family.

The loans were rejected outright which I could have told them at the start application. What I hoped would happen is that I would sit down with someone that is not a computer to make a decsion bases on what I am telling them. I understand a bank is in business to make money, but shouldnt they help people who are be in debt with them to get out of it? I just cant get my head around the fact I owe them the money all ready so how can I be a risk?

Macca83_2

Simple question then. Does a personal loan work out cheaper for you? The Halifax have been known to quote loan rates of 29.9%.

Macca83_2

Reason why i ask is because if it does then you have good grounds for an appeal. Write a letter outlining your current borrowing, the interest rate and monthly repayments, offset that against the new borrowing so it shows the underwriters how your situation would improve. Remember to tell them that the credit card was closed so it shows you are making a serious attempt to pay off the debt. Make sure you include account numbers, contact numbers and get your branch to fax it to the underwriters.

Monkey2401

The loan would work out better for me as I would at least be paying something off each month. The halifax loan would be 48 months at £345.12 - 8.8 APR% thus paid off in 4 years. If I continue with the credit card In 4 years I would still owe them 14k. So a loan is so much better for me as I can pay it off.

Monkey2401

Thank you for your advice Macca83, I will give it a go and see what happens as at the end of the day I have nothing to lose.

Macca83_2

Are you making these applications in branch or online? The 8.8% rate suggests that you're doing it online? Get yourself into the branch. Get talking to a banking advisor, get them on your side. There is no way any other institution is gonna take on this debt with your current salary level. You need to get talking to someone that can go the extra mile. You can't negotiate with a computer