Consolidation Loan Needed

jps83

Hi,

Myself and my partner have a number of credit cards and are paying monthly payments on them all but are wanting to get a loan to consolidate them all, reduce monthly repayments and have a date planned where they will all be paid off.

Problem is we have just been rejected for a loan, annoyingly a loan will save us about £300 a month based on what we are currently paying.

What are our options? Are there any legitimate companies which will consider our situation, current payments and approve a loan based on the credit being cleared?

I suppose this is where good old fashioned banking comes in but this obviously doesn't exist any more.

I look forward to hearing from you,

Thanks

Thrugelmir

jps83 wrote: »

I suppose this is where good old fashioned banking comes in but this obviously doesn't exist any more.

Bank would consider the risk too high. Onus is on you to tackle the issue in the first instance and bring your debt levels down to more manageable levels. A lender needs to convinced that you are addressing the issue full on.

magpiecottage

I'm afraid the bottom line is that if a lender thinks you are struggling to control your finances they will probably not want to lend.

It is also worth remembering that consolidating debt might reduce monthly outgoings but you will usually have those outgoings for many more months, so they cost more in the long run.

The best bet is probably to pay the minimum to all except the most expensive for now and as much as you can to that one.

Check it periodically to see if it still charges the highest rate and manage them down.

Tixy

If your debts are comparatively high compared to your salaries then you will struggle to get a loan to consolidate them all.

A lender will consider if you can afford to service the loan on top of your existing debts.

Are you currently prioritising paying off the highest APR cards first? are you paying more than the minimums on the cards?

You say a loan would save you £300? are you unable to afford your current level of repayment?

jps83

hi,

we can afford but it would be easier if we paid less over a slightly longer period, close credit cards and work from there.

CLAPTON

with just about zero information, it is truely impossible to have an opinion

Thrugelmir

jps83 wrote: »

hi,

we can afford but it would be easier if we paid less over a slightly longer period, close credit cards and work from there.

A lender offering you an easy ride won't help you address the real underlying issues. Which to the bank is the way you manage your finances.

gb12345

jps83 wrote: »

I suppose this is where good old fashioned banking comes in but this obviously doesn't exist any more.

Would that be the "good old fashioned banking" that happily chucked money at anyone who asked for it?

It's the reason that you are in the mess you are in and it doesn't exist anymore thankfully.

Delree

But will you close the credit cards?

DCFC79

jps83 wrote: »

Hi,

Myself and my partner have a number of credit cards and are paying monthly payments on them all but are wanting to get a loan to consolidate them all, reduce monthly repayments and have a date planned where they will all be paid off.

Problem is we have just been rejected for a loan, annoyingly a loan will save us about £300 a month based on what we are currently paying.

What are our options? Are there any legitimate companies which will consider our situation, current payments and approve a loan based on the credit being cleared?

I suppose this is where good old fashioned banking comes in but this obviously doesn't exist any more.

I look forward to hearing from you,

Thanks

Bit sketchy in details but I would imagine since you have been declined your chances are slim.

Look at your spending and cut back, stop using the cards and even go as far as cutting them up.

longtermplanner

You don't say how large a loan you have applied for. If it was large (eg 20k) then it is very very rare for a bank to ever lend that much unsecured. It's not going to matter what you do or who you apply to or how much you will save, it isn't going to happen.

I suggest you spend the next 6 months really trying to get the debts down. Pay the minimums to them all and overpay the one charging the most interest - google "snowballing" to read more about this technique.

At the same time, look hard at cutting your expenditure. Really hard, I mean deciding not to go on holiday this year, stopping the takeaways, make yourself pay for everything in cash, don't hand over the plastic etc.

Then look at how to refinance the now smaller debt. Part onto a loan, part onto a 0% credit card say.