Loan to cover credit cards

Daldermandesign

Hello

I have £20000 over 4 credit cards. We have always managed to move the bulk to 0% but now want to make some serious dents in the amount.
I thought a loan would be ideal, fixed monthly amounts in 1 place and MUCH lower payments.
But my bank has refused my application, when I enquired further its because of my credit card debts. Well yes!
I know the theory is that I could still spend on the credit cards etc.

Is there ever a way of getting a loan, would anyone advise against a loan?

Thanks

gb12345

Daldermandesign wrote: »

Hello

I have £20000 over 4 credit cards. We have always managed to move the bulk to 0% but now want to make some serious dents in the amount.
I thought a loan would be ideal, fixed monthly amounts in 1 place and MUCH lower payments.
But my bank has refused my application, when I enquired further its because of my credit card debts. Well yes!
I know the theory is that I could still spend on the credit cards etc.

Is there ever a way of getting a loan, would anyone advise against a loan?

Thanks

Unless you are earning over 80k, you've got no chance.

Any lender will consider that you will take the money and flitter it away on more shiny things rather than repay your debts.

Tixy

Is any of the card debt with your bank?

Depending on your income level you could possibly see if they would give you a loan for a lower amount which you could then use to pay off your most expensive cards.

You may then be able to move the remainder of the debt to 0% deals (on the cleared cards).

would anyone advise against a loan

If you can keep tarting it to 0% then you should pay off the card debts quicker than you would pay off a loan with interest.

However you mention reducing your monthly outgoings - in which case it will take you longer to pay off your debt than if you keep it on 0% cards.

longtermplanner

You aren't going to get a 20k unsecured loan at all.

That is a lot of debt to keep shuffling around. You probably can't find one simple solution to it all and have to deal with it in chunks. You could ask Nationwide if you could have say a 5k loan using a soft search - see http://www.nationwide.co.uk/applications/PersonalLoanFAQs.htm#q10. That won't leave a mark on your credit file. If you get offered that at an ok rate, then pay the 5k off:
- which ever of the credit cards has the highest rate if they are both charging interest
- the card that is charging interest if one is at 0%
- whichever 0% ends first if they are both at 0%

Get the credit card limit reduced on the card you are paying off.

Then have a look at blitzing your expenditure for a year. Go through all your regular payments and cancel everything that isn't essential - you can get cable and gym membership back when your debts are down to a reasonable level!

Thrugelmir

Daldermandesign wrote: »

Is there ever a way of getting a loan, would anyone advise against a loan?

Thanks

Rather than continually juggling. You need to show a willingness to repay the debt. Slash your outgoings and start repaying.

A lender will detect this pattern over time. Then perhaps feel more sympathetic to your cause.

fozmcfc

Daldermandesign wrote: »

Hello

I have £20000 over 4 credit cards. We have always managed to move the bulk to 0% but now want to make some serious dents in the amount.
I thought a loan would be ideal, fixed monthly amounts in 1 place and MUCH lower payments.
But my bank has refused my application, when I enquired further its because of my credit card debts. Well yes!
I know the theory is that I could still spend on the credit cards etc.

Is there ever a way of getting a loan, would anyone advise against a loan?

Thanks

Consolidation only works, if the person, changes their lifestyle drastically. Many of us have been there and done that several times.

Going on what you have posted, you've built up £20k on 4 cards and have been moving it around 0% deals, so you have already been consolidating and haven't made any effort to reduce balances.

Also going on what you have posted, why do I suspect, that if you did get a £20k loan and pay them off, the cards and/or more cards, would be holding a similar balance way before the £20k loan was paid off.

Maybe I wrong and I hope I am and you have actually reduced the balances from £30k or £40k whilst on 0% deals, then in that case, a massive well done.

In short, if you really haven't made any effort to clear the debt while on 0%, then unless you are actually 110% willing to change your lifestyle, the loan is just the start of digging yourself into a deeper debt hole.

bigadaj

Here's a revolutionary idea, rather than getting a loan on which you pay interest, start paying an equivalent sum onto the cards. This is cheaper than any loan you could obtain and consequently will mean the debt will be repaid far more rapidly.

Alternatively the OP can complain about not being granted a loan, with intersect, and then not be able to flip it any further meaning 20% + interest.