hello everyone - my debt problems

noirenex

Hi everyone,

My name is Danny, I'm relatively new to this forum, I just wanted some advice really on my debt situation.

I currently have £25,800 in unsecured personal debt, in the form of:


Card 1- 5700
Card 2- 3200
Card 3- 1700
Double Glazing Loan - 7100
Car Loan - 6500
Bank Overdraft - 1600

I also have a mortgage with 67,000 outstanding.

My problem is this, my outgoings every month for repaying the debt (Not the mortgage) are at 800/month, and the rates are pretty nasty (25% for the car loan for example), however, I can't get a loan anywhere to consolidate the outgoings and it's crippling my finance, even my bank won't lend me any more because of my credit rating (Equifax says it's good at 447 but i can't get a loan). The comparison engines all come back saying 'Low' chance of getting a loan.

I've been trying for about 2 years to clear some of these off and while I could wait for the terms to finish, I would much rather get them dealt with sooner, so that I can start to free up some of my income .

I saw some stuff about Credit Unions? Any other advice would be welcome, the only consolidation loans I seem to be able to get are at 23% or above, which doesn't really help solve the problem.

worriedwilf

Hi

Could you post a SOA or at least give some info regarding income etc as this will really help people to give advice. From uisng this site I can tell you that there will be a way out of this - martin Lewis always says that he has never seen a debt problem that has been unsolvable so there WILL be a way to clear it.

Good luck

noirenex

Not sure what a SOA is? I recently moved jobs and have had a pay rise, hence my desire to try and consolidate these, after all tax etc I take home around 2300 a month, and my outgoings including mortgage and debt is about 1700 a month, then I have fuel etc, and food to buy, so things are tight but manageable now.

I have a few bits I need to sort out, like getting cheaper internet and phone etc, but what I really wanted was to consolidate that 800 in the debts mentioned into a single outgoing payment, even if I could just take the more expensive 20-25% parts and get a 10k loan that is cheaper it would help.

jaxsmar

Please post a Statement of Affairs it's the fourth 'sticky' down on the debt free wanna be page. It take a bit of time but the more information the better and some more qualified people than me will help you!

lynz68

I think you realise yourself your chances of getting a loan are slim. Your ratio of debt to income is to high which is why you have probably been turned down for loans already.

It is never advisable to borrow money to pay of debt anyway.

Are any of your cards on 0% deals that you could utilise?

As others have already said you need to post an SOA so that you can be given genuine advice about cutting your debts.

As for Credit Unions you are usually required to save first and you would not get a loan of the size you require

worriedwilf

HI

So effectively you have £600 to buy food and fuel. How much do these 2 things come to? I cuurently have £500 spare and have to buy food and fuel out of it which comes to about £250 a month. It can be tough and there a few luxuries but its doable. Are you currently paying minimum payments on your CC's or do you pay more?

nicp60

Hi there,
As a rule of thumb, most lenders won't want you to borrow more than 50% of your gross annual salary, so in order to have access to credit of £50k to consolidate (your existing debt, plus a loan to cover that), you'd need to be earning in the region of £100k.

If you wanted a 10k loan, you'd have to be looking at earning £70k.

As others have said, the best thing to do will be to complete a SoA and start to snowball your debts as much as possible. I appreciate that it'll be slow going for a while, but realistically you're pretty maxed out and I imagine that it's the only (and cheapest) way to become debt free.

£1700 sounds very high - if you complete a SoA you'll get loads of advice on cutting that down.