Debt consolidation help

jamesd

Forget Zopa. No chance at all of getting a loan from them. Far too much debt compared to income, they assume new borrowing won't be used to pay off old debt, the bit of negative history you have is too recent and lending up to the point of total debt being about half of income is as far as they are likely to go.

Zero percent purchase card deals are probably the ones you could most benefit from. Put all possible new spending on those and use the money you spend to pay down the balance of the card with the highest remaining interest rate. Takes a bit longer but there are no balance transfer fees.

On the positive side, your combination of debt and income looks potentially profitable for balance transfer deals so you might still get some, though not the very best terms.

On the DMP side of things, it's no surprise that it's being recommended to you. There are some significant advantages, notably that many or all lenders might be willing to suspend interest payments. On the negative side, it'll harm your credit score, but not as much as if you let the balls you're juggling drop and start to miss payments, or start using payday loans. If you can keep the balls in the air and gradually reduce the interest rates you can probably manage it but it's going to be tough for a while, until it's obvious that your total amount owed is falling.

In the shortish term, for the next year or perhaps two, it's the time when you get the highest financial reward for skimping on spending to reduce borrowing. This is when you get the biggest interest saving gains from getting the balances down and getting to the point where each month isn't financial strife just to keep up.

cripes_2

try do a softsearch - these don't impact your credit rating and they give you a quote and likelihood of a loan...

Nationwide do a softsearch, just go to the website and they will give you a quote... I hear if the apr is over 25% it will go onto be rejected..

moneysupermarket do something similar where they give you a percentage, go to the loans page and enter a few details and they will match you up with lenders based on their criteria, its probably not bang on but could be worth sticking your details in an getting an indication..

its a soft search so wont impact your credit rating

I wouldn't do bankrupt though, you've got a good income.... you'll just need to cut a few things for a few years..

let us know how you get on

Cycrow

u'll have more chance of getting a 0% balance transfer card than a loan, but i think you would also struggle with that too.

you could try fluid, they do a pre-check so it doesn't add a search to your file, it would give you an indication if you are likely to be able to get a balance transfer card

19lottie82

cripes wrote: »

you'll just need to cut a few things for a few years..

The OP is already shelling out half of his wages on minimum payments and has told us he is skint a week after payday, I don't really think he can cutback anymore here.

cripes_2

we don't know, he hasn't said..

he might have full sky package and smoke 20 B&H a day for all we know

Cycrow

cripes wrote: »

we don't know, he hasn't said..

he might have full sky package and smoke 20 B&H a day for all we know

or live a mile away from work but spend £500/month on a car


some people struggle because they dont want to cut back on things, rather than having nothing else to cut back on

Mickey_G23

Thank you all for your help. Apologies to all those I have upset.

DMP is a serious option. I have wrote a little more in another thread.

I look forward to engaging in this forum.