Likelihood of getting a loan

bach230

My husband and I are in quite a bit of trouble with our overdraft, constantly being in it or even going over it now. We pay around £1600 into the account, more dependant on mostly my husband's wage, which covers pretty much everything just about. Unfortunately my husband is a dreadful spender and not only do we need money from somewhere to cover the joint account, my husband is now going over his own overdraft and has credit cards/store accounts which he is paying minimum payments on to.

The total debt works out, according to my husband, to be around £8000.

He's tried for loans before but can't get them due to him having poor credit history. We've been into our bank about things but they are unable to help due to the fact that last October I extended my existing car loan to help the account out then. There was also the fact that I now only work 25 hours a week instead of 35 that I used to due to us having a young son.

My husband doesn't think I would be able to extend my existing loan again due to already doing so and not working enough hours - would this be right?

The only ways therefore that hubby believes we can get out of this mess - that he created - is to go for one of two things...

1. Get a guarantor loan
2. Ask someone to take a loan out themselves and we pay them back the monthly payments

Whether either of these are possible with family I don't know but unfortunately it's damaging our relationship and putting us in a situation which we fear we cannot get out of. (we are unable to take out any loan on our house as its shared ownership).

Any advice/help therefore greatly appreciated xx

arbroath_lass

What has changed since last October? Sorry but borrowing more won't help. And anyone would be mad to guarantee a loan for you as your husband obviously hasn't curbed his spending. Have you?

Take some time to read some of the stories on here. Both the consolidation and guarantor loans.

You need to be on the board below this - debt-free wannabe. They will offer fantastic advice on how to cut your outgoings. It won't be easy, though. Especially if your husband still thinks he can borrow his way out of this.

Bravehearted_2

Anyone who takes a loan out for you two would be mad since you clearly dont know how to live within your means.

opinions4u

My husband doesn't think I would be able to extend my existing loan again due to already doing so and not working enough hours - would this be right?

Probably.

The only ways therefore that hubby believes we can get out of this mess - that he created - is to go for one of two things...

1. Get a guarantor loan
2. Ask someone to take a loan out themselves and we pay them back the monthly payments

There is option 3. Stop being a complete and utter plonker. The best way out of the mess is a radical review of spending. Stop all spending that is non-essential and use the money saved to reduce debt.

Www.makesenseofcards.co.uk and the Debt-free Wannabe forum can help you. Borrowing more money that you can't afford to repay is madness.

redpete

It does seem neither of you recognise the other option, also the priority one to follow, which is to spend less money each month.

It might be difficult because it looks like a long-standing problem but it needs to be done.

Getting another loan will only help in the short term - the most likely scenario (if you managed to get a loan) is that you will use the loan to pay off the other debt then build up that other debt again, leaving you worse off than you were before.

It would be dishonest to ask anyone else to take a loan out for you, getting someone else to be a guarantor or getting them to take a loan out for you will result in the same outcome - you will struggle to make payments and they will end up paying off the loan on your behalf.

You both need to be honest about the situation and sort out the root cause of the problem - spend less!

redpete

Just looked over some of your history - you had the same problems 5 years ago, and again 12 months ago. Did you ever get your husband to reduce his mobile contract, or the Sky subscription? There's no point in asking for sticking plasters every year or so unless you control your spending.

bach230

I think there is possibly an assumption from some people that I am a heavy spender as well as my husband – that is completely inaccurate! I only use the joint account for shopping and petrol (shopping when I go on my own is generally anything between £25-£45), petrol is a maximum of £20 which lasts me around 1-2 weeks. I have my own account which I only use for my car insurance, mobile phone (which is about £10 every month+ (pay as you go but I get a good freebee allowance from Vodafone) and £10 every 3 weeks or so for me to attend choir rehearsals. Apart from this I don’t use my account at all.

My husband is the biggest issue because of his spending, it’s like a boredom thing but it’s now got to the point where we’re really struggling to cope. Most of the debt is his as he has store cards and accounts with places like Amazon. He is paying only the minimum payments on these cards so these are taking a long time to pay off. His wage is not a set amount every month due to the differing shifts he works but it is always over £1100 and apparently for his next pay day, before tax, his wage will be £1900 or so. The problem for him is that, he will put a large sum of this in the joint account to pay the overdraft off (and bills), the rest will go on his own overdraft and his store cards/accounts.

It frazzles my brain a bit to wonder how we’re going to get out of this mess L

Thanks all for your posts though xx

(I will post this onto the debt-free wannabe board as well to get additional help/advice).

opinions4u

I think there is possibly an assumption from some people that I am a heavy spender as well as my husband – that is completely inaccurate

No such assumption on my part. Your first post points the finger fairly clearly.

But it doesn't make any difference. The family money is being frittered away and that creates a problem.

If he's not prepared to change his habits then you're going to get dragged down with him.

redpete

bach230 wrote: »

I think there is possibly an assumption from some people that I am a heavy spender as well as my husband

Not from me, but in your original post you didn't seem to consider the solution of spending less, regardless of who it is that has to spend less. It is a problem that both of you have to deal with together, unless you totally separate your financial affairs and leave it to him to sort out his problems, but IMO part of marriage is dealing with problems together.

bach230

redpete wrote: »

Not from me, but in your original post you didn't seem to consider the solution of spending less, regardless of who it is that has to spend less. It is a problem that both of you have to deal with together, unless you totally separate your financial affairs and leave it to him to sort out his problems, but IMO part of marriage is dealing with problems together.

I don't really know where we can spend less - although our sky bill is more expensive again we have actually combined the tv, phone and internet instead of having it spread so we've cut out paying BT for our line rental and calls, though we rarely ever use the house phone anyway. At least one payment will be stopping at the end of September which will save us £135 each month so that can be used to help pay back the overdraft.

To be honest i think i would rather seperate the financial affairs, i.e. just have my name on the account that pays the bills as i believe we can still afford this between the two of us but we are unable to take his name off the account due to it being overdrawn. I have his card so he has no access from an ATM but still has the account on his online access - again though he cannot take this off due to the account being overdrawn.

opinions4u

If you can't trust him to cut back, perhaps a more significant gesture is required.