Declined loan from sainsburys, not sure next step

R_P_W

You seem focused on how many debts you have rather than how much debt you have!

This is the last time ill say it but think long and hard about taking another loan! Can you not sell some stuff and buy a cheaper car?

Rick_1138

No i know, i realise you are not having a go, and giving good advice.

I had £12k of debt total on monday, with a new loan i will be in £18k of debt, so a £6k increase.

However my ability to clear my credit card debt has risen exponentialy, so can clear it faster, so will be clear of that in 12 months, so by May next year i will have reduced my debt from 18k to 14, my bike loan will have reduced by 2K and my loan will have reduced by £3k, so my debt will be £8k.

This doesnt include any sales of figures on ebay and bonuses from work (which i never class as coming until its in my hand) but these go straight towards debt removal.

I have gone through a lot of my finances and looked at what i can afford, and not just scrimp by, i am on about still having about £5-600 a month after all expenses, including fuel and food.

Other than the bike and car loan i dont have much debits, just a phone and broadband and rent, i dont buy heaps on credit anymore, like i stupidly did when i was in early 20's.

I realise i am taking on greater debt now, but it works out better for me over the next 12 months, and being able to say all my cards are cleared will be a fantastic feeling.

Going4TheDream

maybe its just me but I would have kept my original car and paid down my existing debt rather than adding to it........£18k of unsecured debt is huge on a £30K salary with no real assets to show for it.

Rick_1138

TBF my salary is closer to 35k after this month, but i will be reducing about 2k of that debt next month also.

However having weighed up all my options it was the most sensible option to sell my car to my old man, he basically gave me what i apid for it 2 years ago! private sale i would have got maybe £3.5k, here i got £6k, so was able to pay off loan early and have cash in hand which has allwed me to clear one card straight away, with another £1000 coming on monday from paypal to clear another almost completely.

If i hadnt done this, i would be paying pretty much what i am now a month again just on card debt and the car loan, where as now i am paying just the car loan and a much reduced card repayment.

I am over £175 a month better off now than what i was, surely that is a better sitiation to be in as i can afford to get rid of the unsecured card debt faster.

Maybe i have done it wrong, but in my circumstance i felt it was right for me, maybe i am one of the idiots, but i balk at PCP finance, paying over £400 a month for one item, and this allwos me to start saving.

pauletruth

you need to listern. your on 31k you want your total loans to be 18k. they wont lend to that level. the max is 50% of your income. so at the very most 15.5k.
they look at available credit so that 4k post office card is not going to help you.

your payment history won't matter your over their threshold.

Rick_1138

pauletruth wrote: »

you need to listern. your on 31k you want your total loans to be 18k. they wont lend to that level. the max is 50% of your income. so at the very most 15.5k.
they look at available credit so that 4k post office card is not going to help you.

your payment history won't matter your over their threshold.

Sorry i should have said, I am not still trying to get £13k from sainsburys.

I contacted RBS and they were extremely helpful, went through all of my income and outgoings, gave me a decent rate of APR and i took less out than i had planned to just cover the car, not a bit extra to clear cards. i have cash in bank to do that, but not completely to zero.

so total debt against me now is £16k, but will be 15k on monday once paid into cards.

Obviously i am still a safe bet for my bank, and they have seen i am clearing the existing credit card which they seemed pleased about and asked if i wanted to review the rate on the card too, which is already low at 14% but i said no as i dont want to use it anymore.

Probably not what most on here seem to want to hear, but i am aware of my finances, have a stronger plan to get rid of it rather than drip by on minimum payments or something daft.

I do realise debt is dangerous, but if this gets me to a debt free place sooner than how i was attempting it before then its a positive in my eyes.

I may be wrong

You-kip

pauletruth wrote: »

you need to listern. your on 31k you want your total loans to be 18k. they wont lend to that level. the max is 50% of your income. so at the very most 15.5k.
they look at available credit so that 4k post office card is not going to help you.

your payment history won't matter your over their threshold.

Although I agree with your post the 50% threshold is not facts but a decent platform to work from.We know from other posts 60-70% debt vs salaries have got loans.

Rick_1138

I would have thought sitting at the 50% bracket is why i was declined from sainsburys as they just asked for income and that was it, no detailed info on cards etc, where as RBS and tesco previously have always asked quite detailed info and been happy to lend.

So i think asking for £2k less than planned helped a lot in my application.

Georgiegirl256

Rick_1138 wrote: »

Well I have the ability to pay for a few of the months payments, i.e. up to say 6 months. I could sell some things and the like, i dont assume once i had lost my job it would magically be paid. I just meant if you couldnt get work for long term like a year or so, then you would be in trouble, but this is worst case scenario and extremely unlikely, as its not as if i wouldnt be looking for work at all times, and there are methods to help in these circumstances with job seekers etc, though i have never looked into that seriously as never had too, as i have always been in work.

When i said there is no way i could make payments i meant over a long period, of say a year or more, but i dont mean i couldnt make the next months payment, if that makes sense.

Totally It's just something to obviously take into consideration as speaking from experience, I know how quick you can go from being employed to being made redundant....I worked at Comet

Laconic

Rick_1138 wrote: »

I have a decent disposable income, i am not scrimping each month to get by, and i am clearing debt well (i sell painted miniature figures on ebay which gives me a good £400 a month as a side income, which has cleared a lot) and taking out £11k on a car which is my main enjoyment in life as i dont spend on much else, dont smoke, drink, have expensive hobbies, so i am saving for a house and am quite frugal. Its just the nicer car i am looking to have and consolidate my various debt into one payment that is only about £50 more a month than my Tesco loan was.
Its not like i am putting £6k down and paying £300 a month on some daft PCP deal where at the end of 3 years i have nowt to show for shoveling some £18k down the drain, which is what a lot of my friends are doing!

For that kinda money, is this the sort of cheeky chappie you're after? http://www.autotrader.co.uk/classified/advert/201304086161992/sort/default/usedcars/price-to/15000/maximum-age/up_to_3_years_old/price-from/13000/make/jaguar/onesearchad/used/onesearchad/nearlynew/onesearchad/new/radius/1500/postcode/m203eh/page/1?logcode=p

I've been there and I've thought and spoken a lot like yourself and fed a car instead of my bank balance. Yes, I did build savings regardless. No, I didn't get in financial trouble, had some absolutely cracking road trips and I don't regret a mile of it. But I *do* regret the opportunity cost those thousands of pounds represented, how much flexibility I lost when I decided on a new life path... and when I reflect that I would have had just as much fun in the much cheaper car I had a chance to buy, it's a life lesson.

Your focus really should be your net worth, not your monthly payments. When your assets outstrip your debts, there's a peace and feeling of well-being that descends on one that no income can touch. Can't wait to get back there.

Have fun, whatever you do.