Debt Consolidation Loan with RBS

yoshiyella

Hello all and thank you in advance for any information given

I applied for a debt consolidation loan through my bank (RBS) online and the response at the end was "agreed in principal.... you will receive documents in a few days and you will need to provide documentation"

The amount was for £7500 (they quoted £198 a month) and I earn £27000 a year through my job and about £4500 a year from another job.

Firstly, does anyone know what documents they may request (just so I can get organised) and secondly does anyone know how the RBS judge affordability and do they take into consideration any assets I have (£4000 car and £1200 in my savings account with them).

I am really wanting this consolidation loan as it would lower my monthly payment by approximately £170 a month and all my accounts that would be paid off have already been closed down so they will be able to see that it won't come back to haunt them.

Thank you again for your time

Bravehearted_2

Why do you have £1200 in savings when you're struggling to repay an overdraft.

Is the saving earning more interest than the OD costs? Didn't think so.

Apples2

Get your last three payslips ready at least.

They don't care about assets or savings, nor will they consider you closing accounts. It will be based on the here and now. Can you support this additional borrowing on top of everything else you owe people?

From what info you have posted you sound borderline.

How have you managed to already close down the accounts you are using this new loan to clear?

pheonixrising21

Apples2 wrote: »

How have you managed to already close down the accounts you are using this new loan to clear?

Credit cards where a rate rise has been rejected? If you reject the rate rise, no futher spending can be made. In a way, this is closed (to futher borrowing). Therefore, this debt cannot come back to haunt them. Any "limit" over and above the current balance becomes void. I have done this with my AA CC. I had a balance just over £3k and a limit of £4k. They said they were going to increase the rate, I said no thanks, they removed the spending facility and the card was cancelled. I can no longer purchase anything using the card, ever.

However, as you say, its in the here and now so no guarantee that the loan will be used to clear balances which exist. Although, if it is and the current accounts do not allow further spending, then the debts cannot come back (without further applications).

I'm not going to get into the argument that new lenders should be able to settle and completely close existing accounts on request of the borrower to minimise the risk, as car dealers/lenders do. Its just common sense to me.

[Deleted User]

pheonixrising21 wrote: »

Credit cards where a rate rise has been rejected? If you reject the rate rise, no futher spending can be made. In a way, this is closed (to futher borrowing).

You're right that such an account is closed in practce. But I believe it will still show as open on the OP's credit report, as a balance is still owing. So an new lender would still consider it to be open.

pheonixrising21

Deleted_User wrote: »

You're right that such an account is closed in practce. But I believe it will still show as open on the OP's credit report, as a balance is still owing. So an new lender would still consider it to be open.

Obviously the balance would still show, but the availabe limit should not...

[Deleted User]

I believe the limit does still show. I haven't been in such a position myself, but there have certainly been a number of threads here where OPs have claimed that the available limit still shows up, despite the account being in paydown mode and the remaining limit is actually unaccessible.

Willing to stand corrected though.

pheonixrising21

Deleted_User wrote: »

I believe the limit does still show. I haven't been in such a position myself, but there have certainly been a number of threads here where OPs have claimed that the available limit still shows up, despite the account being in paydown mode and the remaining limit is actually unaccessible.

Willing to stand corrected though.

Just had a look at my report and it looks like a bit of both!

My AA CC in paydown mode shows a limit, but my Cahoot flexible loan shows a limit of £0 since the flexible drawdown facility was removed.

yoshiyella

Bravehearted wrote: »

Why do you have £1200 in savings when you're struggling to repay an overdraft.

Is the saving earning more interest than the OD costs? Didn't think so.

Well of course its not earning more interest that the OD - but hang on a second, I don't have one! Never mentioned an OD!

yoshiyella

Apples2 wrote: »

Get your last three payslips ready at least.

They don't care about assets or savings, nor will they consider you closing accounts. It will be based on the here and now. Can you support this additional borrowing on top of everything else you owe people?

From what info you have posted you sound borderline.

How have you managed to already close down the accounts you are using this new loan to clear?

Thanks for the information - yes I can support the additional borrowing on top of my current debts as I have £240 a month available (and that's with a fairly high monthly food bill as I like to eat!).

My £1200 has been saved up over the last 6 months and I was saving it to whacking it all on full and final settlement offers.

As for my CC - they have been closed down and showing as that on my report despite me owing a balance - not missed a payment.

Thanks for all those who have responded it is appreciated!

Mags_cat

yoshiyella wrote: »

My £1200 has been saved up over the last 6 months and I was saving it to whacking it all on full and final settlement offers.

In general, to get to a position where a creditor will accept a full and final settlement you will have had to default on the debt first. That can affect your credit file for at least six years and make it difficult or impossible to get further credit (especially something major like a mortgage) during that time. So just do some more research before you go down that line.