What Loan options do I have?

xe0n

Hi guys, first post here.

I am seeking a loan of £4000 over 6 years to pay off current debt and ensure my car stays on the road for work purposes.

My credit rating is pretty shot from my student days, no CCJs but I have missed a fair few payments back in the day and had things passed onto debt collectors (which I have paid).

I work FULL time, with the same company for 3 years, job is very secure. Earn around £19k PA before tax, wife works part-time. We are renting NOT home owners and would like to try and avoid a guarentor loan.

What are our options?, I have some big bills that need servicing this month and my sallary will not strech that far so we have decided to bite the bullet and get all bills upto-date with a one off loan of 4k to pay,

Council Tax,
HMRC Tax,
Car repairs,
SOME money owed to electric.

Please any advice would be great as I am worried we will not make it through this month with the current extra charges we are facing, but funny enough if we could take a loan out and reset current bills we can afford getting by and repayments to the loan.

Many Thanks,

Jake AKA Xe0n.

StuC75

Use this as the Light Bulb moment to work out why you are living beyond your means. Council Tax & Electric are general cost of living expenses - so its a worrying trend to be putting that onto a loan - and paying interest on these over 6 years.. Whats the HMRC tax bill?

whats the interest rates on the debts you have - chances are with history of missed payments getting a loan could be unlikely - or at a very high Apr rate..

Clive_Woody

Can't help much but you can now spread council tax over 12 months (rather than 10) but you need to phone your council and ask them to do this as they generally haven't made a big noise about this as an option.

As for getting a loan it depends what your credit file says, if you've missed electricity payments these may well show on your file and put off a lender. Any other missed payments or defaults?

27col

The money you are owing is all money that should be coming out of your salary. The debts are all standard living expenses that we all have to pay. If you are not able to meet these expenses from your salaries, then you need to seriously re-evaluate your life style. Your priorities need to change and the debts you are running up have to be treated as no.1 priority.You are always going to have these same expenses every year and trying to pay them off with a loan is madness.

xe0n

I know it is madness. Believe me I know, I also know what madness feels like as at the moment I am borderline giving up on EVERYTHING.

To explain things a bit, back in 2009 (I was young and just moved out of home) we ended up in around 4k debt again with bills as "partying was better", no need for a lecture I know my mess up. Then 2011 rolled round, I got married and 10 days later was involved in a bad motorbike accident, 1 year passed and £15,000 compo later I settled all debts and things started to look better.

We moved into a new home after having to move in with the inlaws back in Jan 2013, all was well until our Child Tax credits (for childcare) was put on hold for 9 weeks and we had to foot the full bill, this has caused multiple debts to rack up again and we still have NOT been backdated and by the looks of it we wont be. This has left a MASSIVE dent in our finances,

My income is £17500 PA...
|Debts:
£650 to debt collectors from old very account
£800 to electric (we are in an ALL electric house)
£439 for council tax from our previous address 2 years ago (only found this out yesterday via an attachment of earnings order, this I would have paid but they made no effort to contact us and I was under the impression all was settled.
£500 to council tax for this year
£460 flaming PayDay loan that got out of hand.
I have a bill of around £600 to keep the car on road, car tax AND MOT due up, without a car I loose my job instantly no questions, and no public transport is NOT an option as 3 hours commute each way is insane.

We have two children, young kids. Both started school this sept so again more money and more bills to miss (we have no other options). And for the nail in the coffin my wife has had to leave work due to medical complications with our 3rd child that is on the way.

Now I understand another child is not a good thing right now, this is not the place for opinions on this. I understand the situation given the way things are now and I am TRYING to sort it out as best as I can.

So yes things have not been that great and yes I understand I have not been mature about money, I have been put on some good medication to help with the depression and anxiety with coping with all of this and I need to turn over a new leaf to get things on track, hence effectively taking a loan out to consolidate all my payments into one monthly direct debit allowing us to start paying the usual bill payments which we can do . As with the current situation, companies/utilities wanting "normal payments" plus contribution towards late payments is causing living to become unstable, especially when my income is the sole income to the household until my wife sorts benefits out which we have been told could take upto two months, and the debtors will NOT wait that long....understandably.

So yes I have been a stupid prat, but yes I want to fix things once and for all as this is taking a massive toll on my mental health and most importantly my family life which is suffering as a result.

I hope this shines some light onto things.

xe0n

It just feels like it never ends. I work long hours, do not get to see my kids growing up to have any money at the end of the month taken from every tom !!!!!! and harry wanting money back. We don't get a break, the kids are stuck in the middle of it all and I feel like the scum of the earth over it.

I just want to get things on track and get normality back as its getting to much. All day its a worry all night I am up thinking about it and all I want to do is make life easy for my family.

I dont know what to do or who to talk to about it and I am afraid of doing something stupid or loosing everything over this. unfortunately family help is out of the question as they already have commitments.

Tixy

Hi

With missed payments and current payday loans on your credit file then its unlikely that you will be able to get a loan.

Would your employer consider an advance/small loan in relation to the essential car expenses?

Some possible suggestions for each debt below, but you may want to consider contacting a debt advice charity for some advice on your situation and how best to tackle it.

xe0n wrote: »

£650 to debt collectors from old very account how much are you paying to this at the moment?, this is not a priority and they won't be charging interest, offer them a small payment each month - even if its only a couple of £ a month.

£800 to electric (we are in an ALL electric house) how long have these arrears built up over? have you asked them for a repayment plan to pay this off? will they accept repayment over a year?

£439 for council tax from our previous address 2 years ago (only found this out yesterday via an attachment of earnings order, this I would have paid but they made no effort to contact us and I was under the impression all was settled. so this will be paid straight from your salary, no need to worry about consolidating that now.

£500 to council tax for this year is this arrears that should have been paid already? or is this the total owing for the rest of the year up until March 2014? Ask the council if you can spread this over the next 6months so it will all be paid before the year end.

£460 flaming PayDay loan that got out of hand. you may need to default on this and offer a repayment plan (to do so you need to cancel the CPA with the bank so they cannot take any more payments, and then offer a repayment plan)

I have a bill of around £600 to keep the car on road, car tax AND MOT due up, without a car I loose my job instantly no questions, and no public transport is NOT an option as 3 hours commute each way is insane. Will employer consider an advance? how much is the car worth in the current position? if its more than a cheap runaround any chance you could sell this car and buy a cheaper runaround to keep you on the road. Does your wife also run a car?

You also need to urgent work out a full statement of affairs (income/expenditure) to see how your ongoing expenses (excluding debt repayments) compare to your monthly income. That will then show how much you have available towards debt repayments a month. In ongoing expenses you need to budget for all outgoings, even those that don't happen each month.
Work through every outgoing to consider if it can be reduced/cut out /if you have the best deal on the market etc.

John1993_2

xe0n wrote: »

It just feels like it never ends. I work long hours, do not get to see my kids growing up to have any money at the end of the month taken from every tom !!!!!! and harry wanting money back. We don't get a break, the kids are stuck in the middle of it all and I feel like the scum of the earth over it.

Taking on a loan is not ging to helpp with any of this, I'm afraiid. The "one easy payment" line never reflected reality, it was only ever an advertising slogan from the wrong end of the loans market.

You sound like to may be suffering from depression; a visit to your GP cannot hurt. It is also worth contacting a charity that advises on debts, such as Stepchange.

At the bottom if this is the fact that you spend more tan you earn. You are goig to need to find a way to earn more, or spend less, there is no way to borrow your way back to safety.

xe0n

John1993 wrote: »

Taking on a loan is not ging to helpp with any of this, I'm afraiid. The "one easy payment" line never reflected reality, it was only ever an advertising slogan from the wrong end of the loans market.

You sound like to may be suffering from depression; a visit to your GP cannot hurt. It is also worth contacting a charity that advises on debts, such as Stepchange.

At the bottom if this is the fact that you spend more tan you earn. You are goig to need to find a way to earn more, or spend less, there is no way to borrow your way back to safety.

I have been, I was put on some medication for the first time 4 weeks ago and they have finally started working so this is the drive to tackle the root cause and get life back on track as its a vicious circle,

End up in debt, get severe depression, try and spend the way out of depression end up in further debt then further depression and the ever deeper spiral continues.

xe0n

Tixy wrote: »

Hi

With missed payments and current payday loans on your credit file then its unlikely that you will be able to get a loan.

Would your employer consider an advance/small loan in relation to the essential car expenses?

Some possible suggestions for each debt below, but you may want to consider contacting a debt advice charity for some advice on your situation and how best to tackle it.



You also need to urgent work out a full statement of affairs (income/expenditure) to see how your ongoing expenses (excluding debt repayments) compare to your monthly income. That will then show how much you have available towards debt repayments a month. In ongoing expenses you need to budget for all outgoings, even those that don't happen each month.
Work through every outgoing to consider if it can be reduced/cut out /if you have the best deal on the market etc.

[/QUOTE]Originally Posted by xe0n View Post
£650 to debt collectors from old very account how much are you paying to this at the moment?, this is not a priority and they won't be charging interest, offer them a small payment each month - even if its only a couple of £ a month. Sounds like a good option

£800 to electric (we are in an ALL electric house) how long have these arrears built up over? have you asked them for a repayment plan to pay this off? will they accept repayment over a year?This is since January this year at our new house, the only option they gave us was payments of 250 per month which 130ish of that is the main bill, we cant afford 250 so it is sitting in stalemate at the moment

£439 for council tax from our previous address 2 years ago (only found this out yesterday via an attachment of earnings order, this I would have paid but they made no effort to contact us and I was under the impression all was settled. so this will be paid straight from your salary, no need to worry about consolidating that now. understood

£500 to council tax for this year is this arrears that should have been paid already? or is this the total owing for the rest of the year up until March 2014? Ask the council if you can spread this over the next 6months so it will all be paid before the year end. Owed from this year, we moved in the house back in Jan13, we paid up to march so it might be more than the above figure

£460 flaming PayDay loan that got out of hand. you may need to default on this and offer a repayment plan (to do so you need to cancel the CPA with the bank so they cannot take any more payments, and then offer a repayment plan) What negatives would this have against me? would it just count as a default or would this cause it to go into silly amounts as they have STUPID high %rate?

I have a bill of around £600 to keep the car on road, car tax AND MOT due up, without a car I loose my job instantly no questions, and no public transport is NOT an option as 3 hours commute each way is insane. Will employer consider an advance? how much is the car worth in the current position? if its more than a cheap runaround any chance you could sell this car and buy a cheaper runaround to keep you on the road. Does your wife also run a car?
Nope, they are tight. VERY tight, I am already earning c£8k under the going rate for my job, and due to the IT job market its hard to compete against everyone

scholesfan88

Your not in the worst position in the world, cut back on luxurys and offer realistic payment plans for your outstanding debts but make sure you keep on top of your current bills.