Consolidation Loan

Beabird

I'm hoping for some help! I have 6 seperate credit agreements (loans, credit card etc) that I want to pay off and reduce my monthly outgoings by about £500!
I have applied for 2 loans and been refused - on visiting credit expert it advised that the number of credit accounts and the outstanding balances were having a negative impact on my credit score! I have one credit account on my history that had late payments in 2004, but other than that, squeaky clean.
I'm not sure how to move forward? I am paying them all off as quickly as I can but was hoping someone may have a suggestion?
I also own a flat that I rent out - not sure if I would be able to get a secured loan against it as I don't live there (last resort!) - currently living in private rented house.
Looking for £15k loan
Any help would be greatly appreciated!

InsideInsurance

The two other applications are going to cause you problems for any near future applications. The fact it is a debt consolidation loan also wont be helping you at all as this starts to raise fears of financial difficulty (which the high utilisation rates will also be doing)

What sort of lenders did you approach? Were any of them your main bank? Were they all prime lenders?

There is nothing to stop you securing the debt against a property that you own, just as long as they are aware it isnt your main residence.

DCFC79

If your looking for a 15k loan then is your salary at least 30k or possibly more ?

Maybe cut down on your outgoings to then put any extra money towards th debts.

bargainbetty

Unsecured loans are much tougher to come by these days. The threshhold for debt now seems to be half your income, less your outstanding debt. If your total debt is above the remainder, you won't get the full amount.

How about being a little more creative? See if you might be able to get a low-life-of balance card, and empty the highest interest card onto it (or the best one that you can clear in full). Contact the lender of the now empty card, and ask what deals they will give you. If they refuse, close the account so you do not have the available credit. This will reduce your 'perceived' risk. Get another LLOB card, and so on. Shuffle and tart your debt onto the cheapest options, and focus on bringing it down.

The most important thing is to look at your budget and check you are living within it. Make sure you can do this without extending the debt on your cards. Remove any waste from your expenditure and have an honest look at how the debts have accumulated. If it isn't your fault, so be it, stuff happens. However, if, like me and many others, it was a bit too much 'I want', then see where you need to cut back.

Good luck x

Beabird

InsideInsurance wrote: »

The two other applications are going to cause you problems for any near future applications. The fact it is a debt consolidation loan also wont be helping you at all as this starts to raise fears of financial difficulty (which the high utilisation rates will also be doing)

What sort of lenders did you approach? Were any of them your main bank? Were they all prime lenders?

There is nothing to stop you securing the debt against a property that you own, just as long as they are aware it isnt your main residence.

Main stream lenders - have approached my bank but I went over my oversraft limit for one day and they've said no. I'm paying as much as I can every month - ran up some additional debts last year whilst off on maternity leave for 8 months. Hey ho - will keep paying as see if the situation is different in a few months when the searches are less fresh?

CLAPTON

why is a late payment showing from 2004? they should only show for 6 years


what do you earn?
on the electoral roll?
what equity in the flat?

what are the debt detail
amount
apr
monthly paymnents

Beabird

CLAPTON wrote: »

why is a late payment showing from 2004? they should only show for 6 years


what do you earn?
on the electoral roll?
what equity in the flat?

what are the debt detail
amount
apr
monthly paymnents

Late payments where on an account not settled until 2008 so still showing on my credit file.

I earn £25k a year, on the electoral role and about £10-£15k equity in the flat (dependant on valuation!)

Debts
Loan 7.9 APR due to finish end of next year (£5k left to pay)
Loan 19.9 APR (3k left)
Credit card 29.9 (3k)
Credit card 16.9 APR (3k)
Store card and catalogue 1k owing
Total monthly payments for above - £850 a month.

Any ideas?

CLAPTON

the sort of general rules are:

- lenders don't like your debts to be more than half you salary.
you owe 15k on a 25k salary which is over that rule of thumb

-when you try to borrow 15k lenders will see your total debt as 15k +15k i.e. 30k as they don't know you intend consolidating and even if you told them there is no guarentee you will.

so it's very very unlikely that nay lender will consider lending you that some of money

you could possibily try for 0% BT credit cards and so reduce your interest payments

BugsyBrowne

CLAPTON wrote: »

the sort of general rules are:

- lenders don't like your debts to be more than half you salary.
you owe 15k on a 25k salary which is over that rule of thumb

-when you try to borrow 15k lenders will see your total debt as 15k +15k i.e. 30k as they don't know you intend consolidating and even if you told them there is no guarentee you will.

so it's very very unlikely that nay lender will consider lending you that some of money

you could possibily try for 0% BT credit cards and so reduce your interest payments

Think the OP will even struggle getting a 0% card with that debt to income ratio IMO.

bargainbetty

I'd be tempted to close and lock the 16.9% card so the lender can't up the interest rate any more, and pay the minimum + £1 to all everything, with any spare pennies going to the highest interest debt first.

Ebay, boot fair, sell on FB - clear your old clutter and possibly make some money on it to throw at the debts. Use the debt-free boards to minimise your outgoings and see how you can maximise your income (surveys, online clicks, Quidco, second job) and throw all of that at them too.

As you clear each card, check to see if you can balance transfer anything to a better rate. If you can't, then close it. Bugsy has a point - with that debt to salary ratio, you're unlikely to be offered much until you can bring it down to well below the 50% of salary mark.

Sorry, it's a hard slog, but it really can be done, and you might find you get a bit addicted to the challenge of doing it. Visit the DF and Old Style boards for help.

Good luck