income/consolidation loan ratio

Danger.Mouse_4

Hi,

I am looking to apply for a consolidation loan for both a credit card and loan totalling £10,700. My aim is to reduce the overall amount paid monthly to help cashflow but still get a balance between repayments and total amount paid back.

I have a good credit record with practically zero missed payments etc for a long time and my bank account has been in the black for nearly a year (always within overdraft even before)

I take home approx £16560 net per year. I realise the banks have to guard against the possibility of someone borrowing money to consolidate but not actually do so and becoming more in debt.

Do you think I should apply now or wait until less is owed in relation to income? Any recommendations on likely interest rate?

Any help will be much appreciated.

gb12345

Danger.Mouse wrote: »

Hi,

I am looking to apply for a consolidation loan for both a credit card and loan totalling £10,700. My aim is to reduce the overall amount paid monthly to help cashflow but still get a balance between repayments and total amount paid back.

I have a good credit record with practically zero missed payments etc for a long time and my bank account has been in the black for nearly a year (always within overdraft even before)

I take home approx £16560 net per year. I realise the banks have to guard against the possibility of someone borrowing money to consolidate but not actually do so and becoming more in debt.

Do you think I should apply now or wait until less is owed in relation to income? Any recommendations on likely interest rate?

Any help will be much appreciated.

What is your GROSS income? Unless it is over £40k, then you have no chance.

As a rule of thumb, lenders will usually lend up to a total of 50% of income (considering total credit liability).

CLAPTON

maybe gives us some details about your debts
amounts, apr etc
as there may other ways to pay them off more quickly

Danger.Mouse_4

My gross income is £22,000

Creditcard £8700 @ 16.9%
Loan £2100 @ 8.8% £167 p/m

Apples2

What do you mean practically no missed payments?

chalkie99

Apples2 wrote: »

What do you mean practically no missed payments?

It's the same as being a little bit pregnant.

Danger.Mouse_4

Zero missed loan payments.
Once or twice several years ago I paid credit card few days late otherwise always on time.

Hazzinho

No chance you'll get a loan, your debt is about the limit for your salary.

CLAPTON

Danger.Mouse wrote: »

My gross income is £22,000

Creditcard £8700 @ 16.9%
Loan £2100 @ 8.8% £167 p/m

the loan APR is quite good so you would be unlikely to do better

maybe you could try for a 0% balance transfer CC to move some of the CC debt ?

[Deleted User]

How much are you currently paying, per month?

Danger.Mouse_4

Take home per month £1380