Debt consolidation for bad credit

ashmc

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Hi,

Can anyone give me any advice on loans for bad credit? I need a debt consolidation loan of around £7k, preferably unsecured. At the minute I am literally paying out nearly all my wages to credit cards etc and am left with less and less to live on every month. I'm also only paying the interest so the balances are never reducing. I've tried applying for various loans and credit cards but have been declined and just can't see any light at the end of the tunnel. I know that if I could have it all put onto 1 loan I would be able to meet the payments and could be debt free in a number of years. I've seen adverts on tv for bad credit loans and know the APR is very high but don't feel that I have much choice. Has anyone any experience of any of these companies?

Constructive answers only please!

Thanks

BugsyBrowne

Constructive answer it shall be.

No one will lend you 7k with bad credit history.

How it works is you pay back what you borrow then once other lenders see this you then get what they call good credit history.

Or you can borrow money and don't pay it back then one day when you need to borrow you can't as you screwed over lenders before and every lender knows this from your credit report.

This results in declined applications.

jones160312

Have you called cccs or payplan?? They could help you set up a debt management plan and help freeze interest with creditors.

happycamel_2

You need a DMP not another loan and to be honest, you won't get one anyway.

Pop over to the DFW boards and post up an SOA and you'll get loads of friendly and helpful advice. You could use a debt charity to manage your DMP for you (never pay for a DMP). Your credit rating will be shot but then it probably is already and that'll be no bad thing because you'll have to learn to live within your means.
There is light at the end of the tunnel but it will take a few years of hard work to get there, it sounds like you know that already but loan with a high APR will make it harder and more expensive, DMPs are for people in exactly your situation.

ashmc

BugsyBrowne wrote: »

Constructive answer it shall be.

No one will lend you 7k with bad credit history.

How it works is you pay back what you borrow then once other lenders see this you then get what they call good credit history.

Or you can borrow money and don't pay it back then one day when you need to borrow you can't as you screwed over lenders before and every lender knows this from your credit report.

This results in declined applications.

It's not a case that I've screwed over lenders by not paying them back. As previously stated I am making the minimum payments but as this only clears interest I'm not getting anywhere.

ashmc

I'm worried about setting up a DMP as I don't know what this will mean for the future. For example, if I went to change jobs etc would employers be able to find out about it? Also, will it affect my husband's credit? I'd really rather not go down this route if I can avoid it.

BugsyBrowne

ashmc wrote: »

It's not a case that I've screwed over lenders by not paying them back. As previously stated I am making the minimum payments but as this only clears interest I'm not getting anywhere.

How did you manage to get a bad credit then as normally paying back what you've borrowed doesn't result in bad credit history.

OneLife_OneShot

It won't happen just accept that, I tried to reason why I should get a loan with bad history of even just £1k and in the end I realised it wouldn't happen so I just paid my debts.

happycamel_2

Only paying the minimum won't result in "bad" credit ie defaults and ccjs but if you are judged to be at your maximum affordability ratio then you won't be able to access more credit (this is a good thing, it should stop you taking on more than you can afford).

In order to pay back that capital you're going to need to do one of two things:
1) increase your income - more shifts/overtime, 2nd job (maybe a seasonal Christmas one), sell stuff eg ebay

2) decrease your outgoings - post an SOA on DFW board for advice but generally - Sky TV/other subscriptions, mobile phones on contracts, groceries, entertainment and holidays

ashmc

happycamel wrote: »

Only paying the minimum won't result in "bad" credit ie defaults and ccjs but if you are judged to be at your maximum affordability ratio then you won't be able to access more credit (this is a good thing, it should stop you taking on more than you can afford).

In order to pay back that capital you're going to need to do one of two things:
1) increase your income - more shifts/overtime, 2nd job (maybe a seasonal Christmas one), sell stuff eg ebay

2) decrease your outgoings - post an SOA on DFW board for advice but generally - Sky TV/other subscriptions, mobile phones on contracts, groceries, entertainment and holidays

Thanks. I think the main problem is that I was able to borrow too much when everyone was lending so now have a lot of credit. I can completely understand why I can't get more as I clearly can't pay anything extra. It's just frustrating to know that if it was all lumped together at a lower interest I could start to make a dent in it! I've already decreased my outgoings as much as possible and my job is demanding so wouldn't allow me the time for a 2nd job.

DCFC79

Ok how did you get into this mess ?
Anything to sell ?
Id say you need to cut your spending ? But you have done that.