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

opinions4u

Macca83 wrote: »

See i do feel that the poster has made enough of an effort for someone to take the risk. He has closed off the card to prevent any further spending. He stays with his wifes family to keep over heads down and he pays continuously and on time

that's probably why Im not an underwriter Haha

The risk remains the same.

The net income margin falls from around 26% to 5%. Why would somebody put their reputation on the line to wish away 80% of the profits? An underwriter has absolutely nothing to gain and everything to lose by agreeing the transaction.

bouncydog1

What nobody seems to have suggested on here to help you move forward, is for you to go over to the debt free board and post up a statement of affairs. It seems the time has come for you to take action to improve your situation, rather than bemoaning the fact that the bank won't convert your existing borrowing into some other form.

Options available - reduce your outgoings or up your income so that you can pay the debt down faster.

I don't mean to sound harsh but apart from trying to get more loans you don't appear to have thought of any other options. Could you change your job, increase your hours, get your wife to do the same etc? Take another job on a part time basis and use that income to pay off the debt faster. Whilst it is a millstone around your neck the truth is you chose to spend the money and it is now payback time.

Get over onto the debt free board - post up your statement and start to move forwards instead of standing still!

Macca83_2

opinions4u wrote: »

The risk remains the same.

The net income margin falls from around 26% to 5%. Why would somebody put their reputation on the line to wish away 80% of the profits? An underwriter has absolutely nothing to gain and everything to lose by agreeing the transaction.

The underwriter now has the right to attach certain conditions to the loan - i don't know if it was the same when you worked there? They can insist on the closure of any credit products within Halifax and bank of Scotland and they can place markers on the account to prevent further borrowing. This goes some way to reducing the risk but they obviously can't control what the borrower does outside the group. Would transferring the debt to a product with more manageable terms not be beneficial to both parties?

BugsyBrowne

Might be a long shot and I am not a big fan of secured loans but there are many ok secured loan companies out there who may lend to you but as its on your property if you own one but there are some serious risks to think about.

I suppose this means the ball will be in your court rather then the Halifax if you get what I mean.

bigadaj

I can understand both sides of this argument, what I can't understand is the underwriters during the middle of the last decade, were they under some sort of bonus for lending money out and not getting it back?

ILW

OP says they are on a 15k salary and looking for a 14k loan. It just is not going to happen at a lower rate than the cards.

jo-bo

Macca83 wrote: »

The underwriter now has the right to attach certain conditions to the loan - i don't know if it was the same when you worked there? They can insist on the closure of any credit products within Halifax and bank of Scotland and they can place markers on the account to prevent further spending. This goes some way to reducing the risk but they obviously can't control what the borrower does outside the group. Would transferring the debt to a product with more manageable terms not be beneficial to both parties?

Couldn't agree more, they've had more than they have lent (?) out and from what the OP has said he's at the end of his tether.
And when I took out my loan with rbs they removed my overdraft facilities and no further borrowing for at least 6 months.

guesswho2000

ILW wrote: »

OP says they are on a 15k salary and looking for a 14k loan. It just is not going to happen at a lower rate than the cards.

Agree with this unfortunately, and on a 15k salary, with 14k of debt, a 14k loan takes it to 186% of salary - I think a secured loan might be your only option, if it's an option at all (do you own a house?)

meer53

guesswho2000 wrote: »

Agree with this unfortunately, and on a 15k salary, with 14k of debt, a 14k loan takes it to 186% of salary - I think a secured loan might be your only option, if it's an option at all (do you own a house?)

The OP says they earned 15k when the increases happened. They say this ended 5 years ago when the card limit got to 14k.

OP doesn't say what their salary is now. As they also say they are living with his wifes parents i would assume they don't own any property either.

Cash_Flow

meer53 wrote: »

The OP says they earned 15k when the increases happened. They say this ended 5 years ago when the card limit got to 14k.

OP doesn't say what their salary is now. As they also say they are living with his wifes parents i would assume they don't own any property either.

The OP could refinance his CC with his bank if he could convince them he was in financial difficulty.

Once you get to the stage where you have £14,000 pounds on a credit card and only paying the minimum and still spending on it - the said product is no longer suitable.

Taken from the Lloyds Banking group website:

Talk to your creditors
Don't put off talking to the people you owe money to - this includes your bank. They will help you, which may seem strange, but it is actually in their interest to do so. Plus, by letting them know as soon as possible that you’re struggling to make your repayments, they may be able to help you manage them better

Consider a personal loan
One way to approach your debts could be to put them all together in a single personal loan. Not only could doing this make your repayments more manageable by spreading them out over a longer period of time, but it could also help you stay on budget. But, remember, taking out a personal loan could mean it takes longer to pay off your debt and could cost you more in the long run. You’ll also need to be sure you don't rack up any more debt while you’re paying off this loan.