credit card debt.....need help if to shift to a loan

CherlokHomes

Some people can borrow more than half their salary

That's the reason I asked as I've borrowed more then half of my salary before.

Cycrow

Lenders wont really look at the reasons you got into debt, only if they think you can afford any more debt.

it sounds like you could struggle with a loan.

another option would be a credit card with a 0% balance transfer, you might still struggle to get one of these, but it would be worth a try. Even if you dont get enough to cover all your debts, moving some of it over to 0% will help you out.

if most of your debt is with the same bank, you could try a loan from that bank instead. As the debt is already with them, they may be willing to give you a loan which they will use to clear and close your credit cards, essentially replacing your credit cards with a loan.

either neither are an option, then you just need to focus on paying down the debt, increasing your income, or decreasing your outgoings (or both) so you have more spare money to put towards the debt

dkt_2

Thats what I am trying to do at the moment as I have transferred money to boyfriends card it might get my credit score up for me to get a 0% card but like u say wont transfer all of it but it will be a start.
My outgoings are basicly my phone my 3 cards, countil tax and car insurance. I spend a small amount on food shopping sith my boyfriend and he pays everything else.
I am trying to build a new business up and already have another

Tixy

dkt wrote: »

Oh yes I understand what u mean for paying payments.
But 30-36k.
The reason I am in debt with cards is because my job has slowed down and I dont always earn much, then ive used credit cards to pay for things

That doesn't sound great.

If your outgoings already exceed your income then you will struggle to get more credit, and even if you did get a loan would likely then struggle to make the repayments (which would likely be more than the minimums on your credit cards).

If you are struggling to meet the repayments then maybe pop over to the debt free wannabe board for some advice on your finances overall.

Tixy

CherlokHomes wrote: »

That's the reason I asked as I've borrowed more then half of my salary before.

It does of course also depend when this was.

It used to be relative easy to borrow even up to 1 x salary, but in the current economic and banking climate in general it gets much harder to be accepted for unsecured credit above 50% of your salary.

The overall level of salary is a also factor. It is likely easier for someone earning £60k to borrow more than £30k, than for someone earning say £20k to borrow more than £10k

dkt_2

I am managing to make my payments of over £250. So I could easily pay that a month on a loan

I spoke with stepchange and they said if I am making my payments then they cant do much to help with my credit cards

Tixy

Have you stopped using the cards now? and can afford to repay £250 and don't put any new purchases on them? Is this the minimum payments or more than?

If so then it sounds like the best plan in the short term is just to work on paying as much as you can and reducing the balances down, ideally paying more than the minimum to each card every month (even if only a few pound more it is better than the minimum).

Once they are at a more manageable level you could try to apply for a new 0% card perhaps.

dkt_2

Yes i don't use the cards now. I pay minimum but more when is possible.
I am hoping the amount I have moved to boyfriends card will allow my score to go up and I can apply for a new card. But this will depend on how much the credit limit will be on new card as to what I can shift from my cards.
Its not looking good

Tixy

Potential lenders don't look at scores, but they will compare your income to your existing debts and available credit.

If you have reduced your debts (by moving it out of your name) then your chance of getting a new card or a higher limit if you are accepted should improve, although £1k is not a big reduction so may not make much difference.

What are the limits on the existing 3 cards? are all maxed or is there space on any? if you do have higher unused limits on them then you could also try asking your providers if they have any balance transfer offers available to you as an existing customer.

dkt_2

Ive got credit card limit of 2'250 on one card and balance at 1'800
Credit limit of 2'600 & balance of 1'613.52
Credit limit of 4'050.00 & balance of 3'974.44