Advice needed please!

Pumpkinx

Hi guys, sorry this is a long one.

Right - I need some advice reguarding loans. Me and my partner have tried and tried over the past few days of getting a loan with fail. I either have loan brokers phoning none stop (really would avoid these as I paid £70 broker fee for Yes Loans before and got a £300 payday loan!!) or, been declined or been accpeted for a £7,500 loan for £368 per month for 5 years :mad:

The problem is, we have a few loans (seperate) O/H: HSBC Loan: £7,500 - Left to pay £4,000 (£5,000 paid off the loan with interest) Co-Operative loan: £2,500 - £1,500 left to pay (£3,500 paid off with interest) My loans is: Amigo Loans £4888 of a £5,000 loan. (£5,000 paid off with interest) I have also "fell" into the pay day trap due to unexpected bills and going to pay Wonga £670 on the 30th November plus QuickQuid £69 30th November/£300 to pay 1st Jan) fair to say, our finances are a bit wild at the moment. so we was looking at a £15,000 loan to pay off remaining loans and have a bit left over for our wedding.

We went to HSBC bank the other day, the advisor was a bit unhelpful but did say the underwriters had declined the loan on the basis of my other half on his credit file has an adverse credit. We checked his credit report via Experian it was later found out it was one miss payment of £20.00 for an T-Mobile dongle in 08' - T-Mobile admitted fault over the phone as they never sent the final bill and this was payed yesterday night however, although the adviser for T-Mobile said it'll be of his credit report within 24 hours we found out that wasn't true, we have to write to T-Mobile (which will take months!!) and my bank Lloyds TSB won't issue me a loan because I have pay day loans on my account!! I feel like banging my head against a wall!!!! _pale_

Background info: I'm 22, my credit rating by checkmyfile is 588 I have a secure job which I have been in for three years, my income a month after tax is £1,900. I'm not on my partners mortgage so classed as "tenant". I have one miss payment in 07' however, I have a lot of stuff on credit: 3 mobile contracts: o2, 3, Vodafone (Other half, sister in law, myself) iPad 3 contract sim, 1 Homebase card £800 spent £500 paid off. 1 Amigos Loan. £250.00 (limit by choice) over draft with Lloyds TSB and also I have a "premier account" with them which I got through credit search. I'm also on the electoral roll

Partner: 27, very secure job (HM Forces) Income £1,800 per month after tax , Home owner, Experian credit score 600 (which says poor). Mortgage with HSBC, Co-Operative Loan, HSBC Loan, Citreron (sp?) finance car (1 month ago) total of £13,000. Very account, HSBC £2,000 Limit Credit card (which hasn't been used and was always payed on time when he used it) Bad bits: Not on electoral roll, 1 missed payment (t-mobile dongel)

I know we have a lot coming in but we also have a lot going out also, so we just wanted one loan for one payment per month. After a call from a broker, he had told us we had no chance of getting a £15,000 loan as he had a client with 999 credit score no debts mortgage free and he had been declined.

Any advice will be great, thanx!!

pauletruth

sadly your broke is right. the last thing you need is more credit..
first step would be to clear those pay day loans. followed by the other high intrest loans.

then i would suggest you nip over to the debt free forum and get their advice.

Pumpkinx

So it would be the payday loans that would be stopping us getting credit? X

~Beanie~

Pumpkinx wrote: »

So it would be the payday loans that would be stopping us getting credit? X

Its more likely to be the total amount of credit that you already have.

You say that you would use a new loan to repay your existing debts but a lender can't be sure that you will. So they will add the amount of the new loan you are applying for to the amount of credit that you already have and decline you as the total would be too much.

tell_it_how_it_is

It's gonna sound blunt, but you need to wake up and smell the coffee - you are clearly living well beyond your means, and, as mentioned above, need to consider popping over to the debt free forum and look at ways to rein in your spending.

It's not specifically your payday loans which is the problem, it's your whole situation, especially for one so young.

In theory, you should be able to get by comfortably with three and a half grand a month coming in. As mentioned, you've gotta hit those payday loans first, and then look at eating into the ones with the highest APRs.

Again, sorry to sound so blunt, but you really need to knuckle down and curb your spending while it's not critical, and coming on here for a dose of reality (sorry ) may do you some good.

And if your wedding isn't yet set in stone, the sensible thing would be to put it on hold, otherwise you're gonna have a real testing opening to your marriage.

I do genuinely wish you all the best though, honestly.

lifebeginstoday

Need to start overpaying anything with high interest, ignore any 'score' have from a CRA but please make sure you hammer the Amigo's loan so as not to screw over whoever became the guarantor on it for you;)

Pumpkinx

Thanks so much for your advice. We do have £3,500 coming in per month but as I say, we do have a lot coming out mortgage, child care alone is nearly £1,000 a month and obviously 3 set of loan payments £198.00 amigos - £136.00 HSBC and £67.00 co-op loan. We have to get married because of his job it's been put off for 4 years now and after having children too. But due to a new posting we won't be able to afford private renting or buying in London so need army accommodation (which is £80 odd a week including council tax) but, you need to be married. It's a tough one xx

Ilona

Hi Pumpkin, You might think it's a tough one, but your situation is plain and simple to me. You and your partner spend more than you earn. You have far too much debt already, the last thing you want is more. Yes you have a decent amount of money coming in, but the amount of money going out in debt repayments is entirely of your own making. Stating the obvious I know but I don't think you understand the concept of buying what you need rather than what you want.

I suggest you post up a Statement of Affairs, then people can advise of where your spending can be trimmed down, to release cash to throw at those debts. As for the marriage certificate you must have, you can easily get one of those for a few pounds. The big wedding can be postponed till later when your financial position has greatly improved through living within your means. Not what you want to hear, but unless you want to spend the rest of your life in debt, the only way is to tackle it now and start paying back, not taking more.
Ilona

connikins

Hi there, I was in a very similar position to you a couple of years ago, was spending far more than I earned and it was starting to affect me. If you reach a point where you're thinking "I need another loan" when you're already paying so much for other loans then I think you need to take a look at how you actually view a loan and what you're using it for. If it's for paying off things you can't afford or to ease your living situation then you are kidding yourself.

I also used to sell personal loans for a living and know that I would not have approved a loan for someone of your age who wasn't a homeowner and already had so many credit agreements, it would be unethical.

I'm not saying this to be mean, I'm saying this because I've been where you are: you need to sit down and draw up an in depth list of income and expenditure and be honest about it (I used to round things down a lot). Use the tools available on this website. If you're struggling to do that then make an appointment to see a debt advisor at Citizen's Advice who are really good and can offer different solutions.

It takes time, effort, discipline and commitment but my hubby and I are now debt free and it's amazing. We're still not well off, in fact, neither of us have well paying jobs but it's stress we don't have to bother with any more.

somethingcorporate

What have you spent all that money on? Anything you can sell to start to clear your punitive payday loan debts off with? This will really ease the pressure on you.

Pumpkinx

somethingcorporate wrote: »

What have you spent all that money on? Anything you can sell to start to clear your punitive payday loan debts off with? This will really ease the pressure on you.

The income or the original loans?