Trouble getting loan after over extending myself

KevinK

John1993 wrote: »

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

The loan is £10k - £6k of which is for debt consolodation which I explained at the time.

John1993_2

Hoppefully you realise this, but your "consolidation" has just stuck you a fair way further in debt, by quite a lot of money. For sommeone who knows that they have poor financial discipline, this shouuld serve as a bit of a red flag to you. It's going to be a rare occasion where a person with debt issues should borrow more money only to then give it away.

I hope that we won't see you back on here in future struggling after running up short term debts in addition to this loan.

Cycrow

if you're only paying the minimums, then perhaps its better to start paying more than that ?

if you have no more money available, then you dont have the money avaialble to cover the loan repayments as well.

Do you earn at least 32k ?
otherwise you wont have much chance of getting 16k of credit

DCFC79

Might be an idea to learn some self discipline at some point.

KevinK

My situation is such that I have all my direct debits out when I am paid, I don't struggle for money over the month however I do spend what I have left at the end of the month, therefore 'snowballing' isn't an attractive option for myself.

I currently pay £550 rent with about £100-£125 minimum payment on the credit cards which will increase as the charges/interest come on to my (currently interest free) overdrafts. Today I was accepted for a graduate loan with my bank at RBS (£10k over 5 years, 13%, roughly £220 a month). My situation will now be considerably more favourable given that my 'rent' has fallen from £550 to £200 and I will be actually repaying the loan over 5 years rather than making minimum payments to cards I would of probably never paid off.

Cycrow wrote: »

if you're only paying the minimums, then perhaps its better to start paying more than that ?

if you have no more money available, then you dont have the money avaialble to cover the loan repayments as well.

Do you earn at least 32k ?
otherwise you wont have much chance of getting 16k of credit

I DO have the money available. Also, I stated in my post that the loan was 10k - 6k of which was for consolidation.

DCFC79 wrote: »

Might be an idea to learn some self discipline at some point.

Thanks for the input :T

Cycrow

KevinK wrote: »

I DO have the money available. Also, I stated in my post that the loan was 10k - 6k of which was for consolidation.

exactly, 10k +6k = 16k of credit

Jox

You probably need to learn the hard way so conslidate your debts and do your best not to run up any more.

I spent the whole of my 20's and some of my 30's running up credit cards and getting loans and it was a mess but thankfully I learnt discipline a few years ago and am debt free apart from mortgage!

I dread to think how much I paid in interest ....but best not to think about that now

Moneymash

Cycrow wrote: »

exactly, 10k +6k = 16k of credit

No that's wrong. OP means 10k of which 6k will be for consolidation.

He has borrowed a total of 10k for two different reasons.

ch3101

Moneymash wrote: »

No that's wrong. OP means 10k of which 6k will be for consolidation.

He has borrowed a total of 10k for two different reasons.

But when dpi g the application he is applying for 10k while he has 6k.

So when he first gets the loan he will have 16k of debt.

rabbit_burrow

As I understand it, you will be paying around £100 on debts than you are now, but your 'rent' will reduce by about £300, meaning that you see yourself as being £200 pcm better off?

OK, what if you split with your GF and you have to move out? Then you'll be paying high rent again PLUS the extra £100 pcm than you are now.

You need to look carefully about what could happen in the future (worst case scenario), and how you would manage.

If you are going to lend/gift your GF money, make sure there is some legal agreement drawn as you won't have any claim on the property otherwise.