Loan Balance transfer advise needed

Kazaa218917

Hi folks

Been a member of the forum for ages but always been more of a reader than a poster.

ok, so here is the scenario. I have recently come to self admit that I am VERY BAD when it comes to spending money. Somewhat like my dad. I have no control. Before I get paid, I have a plan on how I will spend. When I get paid that plan goes totally out the window.

Basically ive been in debt for a while now. This includes 1 loan and 2 credit Cards. Both cards maxed out!

Im trying to get rid of my loan and want to clear my credit cards so that I can start saving for my kids future.

In the last 7 years, I have been living at the same address, been married and have a great job with a decent salary. My wife owns the mortgage on the house which means I dont pay for that but instead I have all the little expenses, ie gas electric etc.

My loan was taken out in 2012 with Lloyds TSB for emergency Bathroom refurbishment (a leak messed the entire bathroom up). A few months before that Lloyds offered me a credit card with a 4k balance (big mistake to accept it). End of 2013 I extended my loan in order to clear the credit card i.e consolidate it because the card was maxed. And I also have a Vanquis credit card.

So, current balances:

Personal Loan: £6500 (19.9% APR) - monthly repayments @£360 - will be cleared by December 2015.
Vanquis Card: £1500 (29.9%) - Credit rebuilder card
Lloyds TSB Credit Card: £2500 (not sure what the % is on this)

I need to get my finances straight and clear all the above up so that I am paying 1 amount.

I have used the 0% checkers on the forum but theres only a 40% chance of me getting a balance transfer to include the above amounts.

Can anyone advise how I can clean up my act? Ofcourse I have other expenses i.e mobile phone bills, broadband etc but all those are minor that can be adjusted.

It seems that despite having the same job for the last 7 years and living at the same address and being married, has not helped my credit rating. And now, my salary has been increased even more.

My first Big step is realising and admitting to myself that I am a terrible spender. But I need to fix this and quick. Not for me...but for my Children and my wife!

Hope someone can help.

Cheers guys.

[Deleted User]

What's your income?

What do your credit files look like - eg any missed payments etc?

Kazaa218917

Deleted_User wrote: »

What's your income?

What do your credit files look like - eg any missed payments etc?

Ive only had a look at my credit file once and that was ages ago.

I make 25k a year as off January 2014.

Not had any missed payments since 2006. Never had missed payments on the first loan (which is now cleared) but circumstances changed so repayments were amended. and had missed invoice payments many years ago when I was a student with Orange (mobile), Littlewoods and next. But all that was cleared up.

[Deleted User]

The main problem then is affordability - owing 10k on a salary of £25k. This makes it more unlikely that lenders will give you further credit.

It may be worth a single application for a BT card- but perhaps a life of balance offer, rather than a 0% BT? You're probably not in a position to get the best offers, so look to just improve on what you have.

The other problem is your loan, as you probably won't be able to pay that off with a card, so would need a money transfer option or another loan to do that.

You'd also put yourself in a better position if you can pay down the cards to get away from your limits. Being maxed out is a big warning sign in people looking for more credit.

Kazaa218917

Deleted_User wrote: »

The main problem then is affordability - owing 10k on a salary of £25k. This makes it more unlikely that lenders will give you further credit.

It may be worth a single application for a BT card- but perhaps a life of balance offer, rather than a 0% BT? You're probably not in a position to get the best offers, so look to just improve on what you have.

The other problem is your loan, as you probably won't be able to pay that off with a card, so would need a money transfer option or another loan to do that.

You'd also put yourself in a better position if you can pay down the cards to get away from your limits. Being maxed out is a big warning sign in people looking for more credit.

Cheers for that.

Actually the Loans department said that I can pay it off. How they did not specify.

But youre right. Perhaps look into one of the life low %age cards rather than a 0%.

WIll have a look.

thanks

Anyone else with other suggestions, please do let me know

cheers

fozmcfc

There could be one possibility to re-finance it and that would be with Lloyds.

As the majority of the debt is with them, if you agree that a new loan would be used to pay off the loan and card you have now with them and close the card down, they may agree to refinance both the loan and card into another loan. You might, just might get lucky and get the Vanquis card balance offered in a loan as well, if you do that.

But be aware some people do this however, but then it dawns on them 3 or 4 years down the line, that by doing that they have increased the overall debt, particularly if the loan offered is at a higher APR than the original loan and card.

Failing that, I would definitely take a chance on getting a card to transfer the balance off the Vanquis card at least.

You might stand more chance of getting a 0% card with one of the less stricter card companies, such as a Creation or a Fluid card (which is an MBNA backed card), these are generally for people with good to very good credit ratings.

Then of course to stop yourself running up further debt, you need to close the Vanquis card and cut up the card you transferred to.

If you don't get the loan off Lloyds, but do get a card to transfer the balance from at least the Vanquis card, then look at throwing every spare penny at the Lloyds card and the minimum at the 0% card.

There is always then the possibility of getting another 0% card a year or so further down the line, when your overall debt is less.

Vikipollard

Echo what's been said above, but if you do manage to get a transfer or loan, you absolutely must close the credit cards down.


You've already consolidated the original balance on the credit card into a loan once but still racked up £2.5k on the card again since the end of 2013, so keeping the option open is clearly not one which you can control and manage ~ as many who go for consolidation find (me included).