Why am i not able to get debt consolidation loan ?

Dharock

Hello all

First time posting but not first time reading this website and forums
Over the last few weeks i have been really shocked by the amount of debts i was in and i want to get rid of it but it doesn't seems anybody want to lend me any money at all or cheaper than my current loans/cc (23% and 14% was the only 2 offers i had).
Quick summary of my situation. I'm french and i migrated to england in april 08, found a job in feb 10 and i have been working ever since there and things are going well i had a new job given inside which boosted my income to 32k in september (married at the same time, not linked )
The currents debts we got are :
under my name
Car loan 11/12 bought 8k, from RCI at 17.2%
Barclays card 2k left on it, limit 5k, i believe rate is around 17-18%
John lewis card 750%, 17%
Under the wife
Credit card 3.3k 19%
Barclays loan 1 6.8k 9%
Barclays loan 2 2.1k 11%

I calculated we are paying monthly around 975£ for all thoses. Beside the fact i don't get how we got so many debts, i have been trying to save money by grouping some/all together and pay back faster. we are not homeowners and pay little rent to wife's mother.

My credit score seems good (978 on experian, increased recently), this is what i get on checkmyfile :
Credit Scores & Ratings

Using data seen by Lenders

Callcredit 773
Equifax 786

Using data seen by Landlords/Employers

Callcredit 859
Equifax 859
Experian 859

Other Scores
Postcode 867
Application 712

Hope this wasn't too much
My problem is as follow, my bank won't loan my any money at all even if it's to get rid of all thoses exeternal and give them more interest. They could give my wife 17k at 15% apr/4 years but i don't think it would be worth it.All the website/companies, beside clydesdale at 24%, have refused my application whether for 12k (high rates total) or 21k (all).
All i want is to be able to save money so i can be debt free soon and save 3 or 4k on interests.
What are we doing wrong ? Is there nobody out there who could lend us 10/20k and we could pay back at rate of 1.2k/1.5k a month ?

Thanks for your time.
Jerome

hettiecarro

Hi and welcome to the forum. You have made the first step in recognising you have a problem - so well done for that.
Generally it is not advisable to consolidate debts into one loan. You will be better advised to look at your finances as a whole and tackle the problem from there.
The 1st thing you need to do is to fill out an SoA (statement of affairs) using the link below.
http://www.stoozing.com/calculator/soa.php
Be really honest with yourself as to what your outgoings are, and then there will be people along on here who can make suggestions and offer advice.
Remember there is no debt that cannot be sorted with the right determination and discipline.
Do the SoA a.s.a.p. and we can take it from there.

nearlyrich

Dharock wrote: »

My problem is as follow, my bank won't loan my any money at all even if it's to get rid of all thoses exeternal and give them more interest.

Unfortunately they don't see it as "getting rid" of debt they have no guarantee that you will use a loan to pay off your current debts and even if you do they can't be sure that you won't run them up again putting the chance of them recovering their money in jeopardy. As Hetticarro said the best way to tackle this is to do an SOA work out where you are overspending set a budget and you will soon be on the right track..

mum2one

from someone that took out a consolidation loan, done it twice, 1st time wasn't enough to cover all debts, so as well as paying out loan still paying some of the cards, so plan B - my lovely bank offered me a new loan to cover everything, great in perspective... then when the cards became free they got used again, only a small thing here and there - but then the small thing soon became something bigger. My financial circumstances changed as well at the time, so I ended up in a big mess.

Unless you are 100% sure that once the cards are clear - your never use them again, great - but for a majority of people considaltion loans dont help.

As others have suggested post up an SOA - and go from there, xx

Dharock

Cheers for replies.

Initially the credit card for me was suggested by the bank was strongly reccomended by our bank so i could build my credit rating by filling it and paying back. Reason for this was 4 years ago when the wife started working again nobody would lend us money to buy a car (was offered 5k loan and would pay back 16k with a high risk lender ...)
The cc must have worked a bit as they increased my credit rating 3 times up to 5k£ .
I think one of my problem is there is no settled credit against my name, but then i only took my first and only one 1 year ago. Will be settled in 3 years but i would love to cut a lot of interest off.

Will do the Soa toight when i come home and i have started working on budgetting but it will take a while even to discover where is the money gone.
Thanks for replies

hettiecarro

Hi
How you getting on with your SoA?


hettie

R_P_W

Dharock wrote: »

Cheers for replies.

Initially the credit card for me was suggested by the bank was strongly reccomended by our bank so i could build my credit rating by filling it and paying back. Reason for this was 4 years ago when the wife started working again nobody would lend us money to buy a car (was offered 5k loan and would pay back 16k with a high risk lender ...)
The cc must have worked a bit as they increased my credit rating 3 times up to 5k£ .
I think one of my problem is there is no settled credit against my name, but then i only took my first and only one 1 year ago. Will be settled in 3 years but i would love to cut a lot of interest off.

Will do the Soa toight when i come home and i have started working on budgetting but it will take a while even to discover where is the money gone.
Thanks for replies

Did the bank really say 'fill your credit card'?