Problem lending £8000

R_P_W

kiedistidus wrote: »

Yeah the holiday was a want/need the plan was originally to go to Tokyo but bring back things like electronics and various other items that sell quite well over here so it was sort of going to be the start of a little online business but I suppose I'l just have to wait it out.

Seriously I think you need a bit of a reality check!

Fill out a statement of requirements. Use this time living at home to pay down your debts. On a 15k salary, with that debt plus the costs of rent and bills you are going to struggle to pay it down quick enough.

Consolidation hardly ever works. I'm 31 now, I have been where you are, I spen mor than I earns for several years. I consolidated twice! Made things worse! I was lucky in that my employment was constant and my salary increased quickly.

CLAPTON

why can't you stay at home for a while and use the time to clear the debts completely?

that will put you on a much better footing than trying to clear the debts as well as funding living away from home

DCFC79

kiedistidus wrote: »

Unfortunately wether its for a house, a car or a well deserved holiday( I have left the uk 3 times in my entire life) certain people can only afford these things with credit.

A car yes but no need to take out credit for a holiday, just save up for it.

DCFC79

CLAPTON wrote: »

why can't you stay at home for a while and use the time to clear the debts completely?

that will put you on a much better footing than trying to clear the debts as well as funding living away from home

Just what I was thinking

opinions4u

Problem lending £8000

No. You have a problem borrowing £8,000.

Caladan

I don't understand the OPs comment about living within his means when he says in the same post that part of his first loan was to pay for a holiday...

kiedistidus,
There's nothing wrong with borrowing money to pay for something special, but there are consequences to doing so. Personally I have terrible credit due to a 'want now' attitude in my younger years and wish I'd been more clued up back then.

£7k+ debt on a salary of £24k, imagine you didn't have to pay tax - Around THREE MONTHS of your pay over a year would still be used to repay that debt in full. Once you deduct tax from it that time period extends considerably.

That means you have to work for three whole months and not receive a penny yourself to pay off that debt.

You're quite right that a consolidation loan may prove cheaper/easier than paying several cards - But look at it from this perspective - You're asking a single lender to take on all the credit risk that is currently spread across several lenders, and they can't even be sure you'll actually pay off and close your credit cards.

Potentially you could take out the loan, pay off the cards and then max them out again, and there's not a damn thing the loan company can do about it. From that perspective - particular considering your debt:income ratio, you're high risk.

You may not think you'd use the cards again, and maybe you wont, but I've seen far too many people who do.

I'd be really concerned about someone in their early 20s having £7k + debt with little to show for it - Take note of what people have said in this thread - Pay it off and save.

I know this isn't the kind of answer you wanted when you posted this thread, but there are some really clued up people on this forum (I'm not one of them) who may seem like they're talking out of their own sense of self importance and 'don't get' your individual circumstances, but are actually spot on 9/10.

Regardless - If you do decide consolidation is the thing for you (and it often is if you can be controlled and not take out further credit), wait a few months. You've run too many searches in a short period of time. Your best bet might be your own bank - They have your entire track record rather than just your credit history.

John1993_2

kiedistidus wrote: »

I rarely go shopping or on nights out as I prefer to keep money at hand for things that I find important seriously I'm not a drinker and have never enjoyed clubbing or the likes I tend to go out for special occasions. I have only recently obtained a contract phone which costs me £10 a month and the laptop(i'm currently using to post this costs £50 a month the credit cards where used during my last tenancy for various things most related to the house which unfortunately went belly up when the friend I was living with went awol.

Then why are you in debt?

Thrugelmir

kiedistidus wrote: »

The point of this loan is to break the cycle as the interest of my credit cards is substantially more than a single monthly repayment of a loan based upon previous loan rates I have received.

With the change in the lending market now that lenders have a regulatory obligation to act responsibly. Seems as if "they" are forcing you to take action to curb your life style. Consolidation loans don't work, lenders know that all too well. Perhaps having to tackle the issue head on will be a useful lesson to you (not said in an unkind manner I should add). Earning a teeshirt for the collection is all part of life and growing up.

ch3101

In my opinion you are being declined due to the amount of credit you use compared with what you have been given. I.e. you have used 85% of your credit limits.

Just stay at home a little longer and pay the cards off with money.

dealer_wins

Holidays are luxuries, and should NEVER be funded by taking a loan, and shouldn't really be taken whilst you have unsecured borrowing really!!

Holidays should be funded by saving up!!