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Loan reality check please

Fliss_M
Fliss_M Posts: 697 Forumite
Part of the Furniture 500 Posts Photogenic Combo Breaker
I need a 15k loan for credit cards and a new car. Looking at sainsburys over 7 years. I have 1 missed payment on a closed store card from 4 years ago and 18.7k of credit (from credit cards store cards and available overdraft) and am on 27k. Am I kidding myself? Thanks
The will to save every money saving penny we can
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Comments

  • Fliss_M
    Fliss_M Posts: 697 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    Oh and am a home owner
    The will to save every money saving penny we can
  • Tixy
    Tixy Posts: 31,455 Forumite
    1 sole missed payment shouldn't be the killer on its own.

    Rather than just your level of credit - whats your existing level of debt? If its anything substantial then I'd imagine you will struggle.

    Do you use your overdraft?

    If there is a lot of unused credit on store cards etc it might be sensible to reduce / close some.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what are your current debts?
  • Fliss_M
    Fliss_M Posts: 697 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    9k on 2 cards. They are 0% but when the car reared it's head I knew I couldn't manage both. Use about 500-600 per month on overdraft while waiting for dh to get paid mid month. It's the level of given credit that worries me.
    The will to save every money saving penny we can
  • Fliss_M
    Fliss_M Posts: 697 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    File currently shows 5.1k but just moved 4k from dh's card as that 0% ended this month. (b4the car situation became clear)
    The will to save every money saving penny we can
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 16 August 2012 at 1:07PM
    Editing re reposnses:

    If you have £9K debt, then on a salary of £27k, you are very unlikely to be given £15k as it takes you over the 50% debt to income ratio. If you have available credit, can you not juggle your finances a bit by contacting lenders to enquire about lower-life-of-balance transfers, 0% periods (if you have empyt cards) and start working on clearing the store cards, which are typically more expensive in interest rates?

    You could also consider closing off any unused accounts (if you can't use them to get better deals).

    How much do you need for the car? There might be alternative finance options, but bear in mind a lot of people (me including tbh) will tend to say you should save up for a cheaper runabout rather than spending thousands on a newer model.

    Just warning you.... people will comment!
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • Tixy
    Tixy Posts: 31,455 Forumite
    Very unlikely at all.

    Even if the file only shows £5.1k you'll still need to truthfully say what debts you have at the time of application.

    If you have £9k debt is 'just' £6k for the car? you might just about get accepted for a loan of that sort of size on your salary. Although aiming for a lower loan / cheaper car would be more likely though on your salary.

    Some lenders seem to be more worried about unused available credit than others. But I think your higher problem is the level of debt not level of credit.

    Who are the cards with?, if some is with your main bank, might be worth talking to your own bank about your finances and seeing if they could offer anything.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Fliss_M
    Fliss_M Posts: 697 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    Thank you. I do expect some unhelpful comments but its ones like your sm after.
    I can juggle, I have been doing but I have 2 cards with a large enough balance and there the 2 with the balance. The others are 3k here and 3k there. My plan had been to juggle for a year, pay them off then save for the car but I just spend 2k on it, it now needs another 1k. It's an 8 year old 307 doing 15k a year. I think the bills won't stop. I have an alternative source to get the 15k. Get my mum to and I make payments but I'd rather not if I can help it.
    The will to save every money saving penny we can
  • Fliss_M
    Fliss_M Posts: 697 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    There with virgin and Barclays. My bank is HSBC.
    The will to save every money saving penny we can
  • Tixy
    Tixy Posts: 31,455 Forumite
    If you do go down the route of borrowing from mother (not that I'm recommending it) then would you not just borrow the amount if you leave the 0% cards as they are? Would seem sensible - cost wise.
    (unless mother has the money personally and wouldn't charge you interest).

    If you did consolidate everything using money from mother then in a few months once your files reflect no debt and you've closed/reduced limits on some accounts - you might then stand a much better chance of getting a loan to repay mum quickly.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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