need a loan

Options11

right: ive got into a bit of a problem with money. here is the situation:

credit cards

1: 600
2: 600
3: 1000
4: 500

= 2700

overdraft

1: 1000
2: 1200

= 2200

in total = £4900

the problem is. my credit cards all have a small limit i.e. 600 and 1000 and my overdraft limits are both around 1000. Im 20 and finding it hard to get a loan but i need either a loan or a credit card with a big limit so i can transfer it all onto 1 account instead of being maxed out on everything. i need some advice please

jonesMUFCforever

First and most important piece of advice anybody will give you on here is STOP!!!!!!!!!!!!!!!!

You are only 20 years of age and already you have debts of £4900.
4 credit cards and 2 overdrafts and you think by msgically put them in one place is going to make things better. You are living in a fools paradise!

Why on earth are you in so much debt?
If you dont stop now you will really mess up your life before long.

First of all make a full statement of affairs - income and all expenditure and go along to the debt free wannabee board.

A loan or new credit card is not the answer - you need to stop spending and concentrate on paying off the highest APR's first and chop up those cards.

nomoneytoday

Don't borrow money to pay off borrowed money.

Options11

yea these are good points and im slowly trying to sort it all out. but wouldnt it be better if i were to take out a loan to pay of all the credit cards as the interest rates are high on the cards?

beverleyhills

You must think about changing your spending habits before you think about taking out a loan.
If you don't you will have even more debt.

jonesMUFCforever

Your first post indicated that you were finding it difficult to get a loan so by implication you have tried various companies.
This will only make your credit history look even worse.
Forget about a loan , change your lifestyle and start snowballing - that is paying as much as you can each month on the card with the highest APR until it's paid off etc.

Larralacha

Options11 wrote: »

yea these are good points and im slowly trying to sort it all out. but wouldnt it be better if i were to take out a loan to pay of all the credit cards as the interest rates are high on the cards?

It seems to me that you have 2 options open to you.
1. You can try to get a loan, but as mentioned in a previous response, you seem to find it difficult to get one which would therefore show that you have defaulted on payments. In this case you would almost certainly be charged an extortionate rate of interest. If that is what you want then I would advise you to check with a finance broker first to see what offers you may get (most of these companies deal with sub-prime lenders who have a looser criteria than High St banks but make their money in high APRs and in some cases £50 admin charges)- applying with a broker does not usually result in a credit search until you are dealing directly with a proposed lender. However, if you choose this option, then you would need to clear all of the debts and ALSO cancel/return/destroy any credit cards that you have. If you fail to do this, your history shows that you would probably just run these debts up again as you are obviously living outside of your means. This will then put you in a worse position than you are in now.
2. Either visit the debt free wannabee board or speak to a Debt management company. Either way, you will then have up to 5 years of having to live within your means and this will hopefully lead to a better respect for the money that you earn and also a repaired credit rating.

To echo the previous comments...at 20 years of age you are close to falling into a very deep whole that it is easy to fall into, but the further you fall, the more difficult it will be to climb out of.
ACT NOW OR YOU WILL REGRET IT !!!