Declined £320 credit

pheonixrising21

iolanthe07 wrote: »

OK. Whatever.

Thank you for your helpful post.

I take it you don't agree that this could work? I'd be interested to know why you think this wouldn't work, other than the lenders not being willing to do the work of contacting other lenders and closing down accounts with them? Maybe there is something obvious that I have missed? I'm not perfect!

It doesn't encourage additonal debt (it is just restructuring exisiting debt). It is replacing several lines of credit which may have varying interest rates, varying terms and varying monthly payments and payment dates, into one lump monthly payment for a fixed term.

If the lender could guarantee that the existing debt is paid off and (more importantly) the line of credit closed down, it would significantly lower the risk to them, maybe even allowing better rates for the borrower (ok, maybe I'm being a bit too optimistic now ).

Obviously, the interest rates and term involved would dictate whether this is the best for the party concerned i.e. monthly payments vs long term total interest, etc, but that would be a personal decision based on circumstances.

I'm not saying this a perfect solution, or even one I would use myself 9I'd have to look at the details of the loan), but I do think it would make consolidation loans more feasible.

Take my situation, I would love to refinance my santander loan and/or AA credit card to one with a lower interest rate. Currently, all I can do is apply for an additional loan. I could say to a lender that I will use the money to pay off my santander loan, but they cannot guarantee this. I could just take the money and spend it on a new TV, ps3, ipad, etc, etc, etc. Or I could pay off the loan, pay off the credit card (as I agreed to) but then max out the card again. I am unlikely to be accepted for an additional loan due to my high debt to salary ratio. My suggestion above would not increase this ratio at all.

pheonixrising21

Apples2 wrote: »

For goodness sake Phoenix, give it in already.

Why? Have I broken a rule?

KingElvis

pheonixrising21 wrote: »

Why? Have I broken a rule?

No but we're all hoping this thread would die a peaceful death and go to the great recycle bin in the sky.......

(damn it's back at the top again)

pheonixrising21

KingElvis wrote: »

No but we're all hoping this thread would die a peaceful death and go to the great recycle bin in the sky.......

(damn it's back at the top again)

OK, in that case, this is the last from me in this thread. Hope I haven't offended anyone too much!