Trouble getting loan after over extending myself

KevinK

Graduated from university last year with £6k in debt between 3 overdrafts, 2 credit cards and a store card - about £3k is interest free overdrafts on which interest becomes due in stages. I'm struggling to get any loan with a decent APR (only ones I've been accepted for are 20%-30% which I wouldn't entertain) as all sources are pretty much up to their limit. I'm in full time employment and never miss a payment but I'm conscious that it'll take my years to pay this debt off if I just make the minimum payment and would like to consolidate.

Any tips on what I should do? Paying in stages isn't really an option as I don't have the self discipline, I'd like to pay off all accounts and close them.

You-kip

What do you mean you've been accepted for 20% & 30% loans.

Is this off your own bank or some dodgy loan broker?

KevinK

You-kip wrote: »

What do you mean you've been accepted for 20% & 30% loans.

Is this off your own bank or some dodgy loan broker?

Bit of both, 30% for dodgy ones and 20% graduate loan from RBS.

You-kip

KevinK wrote: »

Bit of both, 30% for dodgy ones and 20% graduate loan from RBS.

Try this its a soft quote.
http://www.nationwide.co.uk/loans/apply-loan.htm

KevinK

19.4 % is coming up.

You-kip

KevinK wrote: »

19.4 % is coming up.

I would probably say that will be a decline if I'm being honest then.

Vikipollard

KevinK wrote: »

Graduated from university last year with £6k in debt between 3 overdrafts, 2 credit cards and a store card - about £3k is interest free overdrafts on which interest becomes due in stages.

I'm conscious that it'll take my years to pay this debt off if I just make the minimum payment and would like to consolidate.

Any tips on what I should do? Paying in stages isn't really an option as I don't have the self discipline, I'd like to pay off all accounts and close them.

The emboldened bits highlight precisely why you should avoid consolidation like piles. If you don't have the self discipline to pay off in stages (I'm assuming you mean snowballing), then you won't have the self-discipline to not use the credit/store cards and potentially the overdraft again. It takes extreme self-discipline for that. Don't do it.

What are the APRs on the credit cards?

KevinK

Vikipollard wrote: »

The emboldened bits highlight precisely why you should avoid consolidation like piles. If you don't have the self discipline to pay off in stages (I'm assuming you mean snowballing), then you won't have the self-discipline to not use the credit/store cards and potentially the overdraft again. It takes extreme self-discipline for that. Don't do it.

What are the APRs on the credit cards?

I need 4k for a deposit for mortgage too (mortgage not in my name - long story) so it's not just the fact of being lazy re repaying credit cards ans I will close all the credit cards, store cards and two bank accounts on receipt of the loan.

Credit cards and store card vary between 17-30%.

John1993_2

KevinK wrote: »

I need 4k for a deposit for mortgage too (mortgage not in my name - long story) so it's not just the fact of being lazy re repaying credit cards ans I will close all the credit cards, store cards and two bank accounts on receipt of the loan.

Credit cards and store card vary between 17-30%.

I'm not sure if you are suggesting borrowing for your deposit, but that's not allowed, so doesn't work. It needs to come from savings.

I think that you will struggle getting a loan, and the only advice that I can give is to avoid payday lenders and the like, and never to enter any bank details into a site that purports to find you loans.

Other than that, you may just need to cut back spending, find extra income, and work hard to pay down your debts.

KevinK

John1993 wrote: »

I'm not sure if you are suggesting borrowing for your deposit, but that's not allowed, so doesn't work. It needs to come from savings.

I think that you will struggle getting a loan, and the only advice that I can give is to avoid payday lenders and the like, and never to enter any bank details into a site that purports to find you loans.

Other than that, you may just need to cut back spending, find extra income, and work hard to pay down your debts.

The mortgage is in my girlfriends name so it's technically a gift - I currently rent at £550 and mortgage is just over £200 so I'm basically saving the monthly repayment on the loan there.

I've already been accepted at RBS and have 14 days to accept or reject but 20% seems high.

John1993_2

Did you tell them that the purpose of the loan was a gift?