crazy Idea but....

benevans1989

Hi All,

basically, I got refused a loan from my bank - but I cant quite figure why as they are too vague.
I think it may have had something to do with the fact ive recently moved house and the council have yet to update the electoral roll,
despite sending the paperwork off over christmas.

Now the reason i wanted a loan:

I have a cc and loan already + the finance i got for my new car (again i got finance in november) so i thought hmm, i could refinance all my crap effectively put into one payment, save 200 a month, and over the next 4 years save about 600 quid on the finance of the car...

The problem as to why i want a loan:

Back in November i could afford the newer car + all my other payments, AND moving into a house with my then Girlfriend.

after about 3 weeks the then girlfriend decided, Moving out of home was too much of a step, despite going along with the whole plan.... and left.. Leaving me with it all, and the fact everyone i know is 25 miles away, Including work. so im sort of out on a limb..

So Its pretty much left me going payday to payday, and I hate it. ive never before gone payday to payday, always managing to save up etc. yeah ive made mistakes, in my past - ie: 4/5 years ago etc..

Im just wondering really what i could do - i had thought about getting a house mate, but the issue stands at firstly the rigmarole of informing the estate agents, and then landlord,
I just dont want be be where i was 5 years ago..

Any advice would be kindly taken.

Tixy

If you applied to go on the register at christmas then you will have gone on the roll as from last week, and these will be updated with the credit reference agencies at some point between now and the end of March.

So it may be that the bank would reconsider a loan in a couple of months (if that was the main reason for the decline).

But if you are struggling with finances anyway then that may not be the best solution - presumably this is a rental property not a house you have bought? how long is the tenancy agreement? a whole year or is it just 6months?

Are you able to restructure your current loan in the short term? or even take a payment holiday for a couple of months, especially if it is only a 6month tenancy?

CLAPTON

maybe tell us the debt details
amount, apr, monthly payments

and how much you earn

benevans1989

Well basically,
5 years ago, i taken a loan out, to buy a car + insurence
as i had nothing, the only thing i did have was my job, which 6 months down the line i lost because the company folded- this was in 2009 -
While trying to sort out things, with the repercussions of losing the job (like a lot of people at the time im sure..) I had to move back home with my folks as i was on JSA, and to top it off, i lost my driving licence for a year because i basically went off the rails.

I defaulted on the loan, as i was only paying them £10 per month as a gesture payment, which just meant i was getting deeper and deeper in trouble*

I also defaulted on my phone contract because again, they wouldnt budge, and somehow expected me to come up with the remainding balence.. - i basically told them to get f...ed, obviously i have now paid the said phonecontract off ages ago, and yes its still on my report i know..
Now the Loan, this bad boy i didnt pay for a while because i was out of work, As soon as i got a job i let my money build back up to a) get driving again and start paying my way.

I was really good with my credit card too, until i moved out, because it was close to christmas and we were moving i figured - put on the card, pay off asap. which at the moment its at 950..
and im paying 50 a month with shlte APR as ive never changed it.
Ive not used it since december so thats a good thing,

So Im paying 50 per month for cc 950
180 per month for old loan. i think about 1600 left on this(settlement is 1400) i called up..
130 per month for car over 4 years i think total cost is going to end up at, about 8,300( settlement is 5k)
this is 360 per month something i wanted to reduce to to about 160.

it would free me up 200 per month of course.

my earning are 1350ish
360 debt
about 120 fuel
car ins 50 pcm
phone 40 pcm
fags: my only vice... 60ish pcm. which im trying to cut down but i just cant bloody seem to..

these are my personal outgoings in total.. so about say 650.

this leaves me about 700- good times yeah, out come bills.

so im kinda left with perhaps a couple quid at the end of the month but if i need extra fuel or food perhaps, then thats where it tends to go..

I mean its not like im massively struggling, however i think i just need a plan, in order to free up some so i can set myself a rainyday fund.. i mean, lets just say if my car breaks, i would be screwed, and then that would go on the CC which lets be honest, i dont really want to be going down that road,

And i dont really want to be going back to where i was 5 years ago.. ive only just got back on my feet and its going creek without a paddle....

Much appreciated.

Apples2

The bank were being vague to be kind, you have outlined above why you won't be getting a sensible loan.

Sort your only vice out for a start.
I was a 20 a day person when I went electronic.

It wasn't a one day transformation but I immediately drastically cut down. I went to one in three (1 cigarette to 2 x electronic) so a 60% saving straight away.
It took about 6 Months in total to never have, or want a cigarette again.

I use one of these
http://www.youtube.com/watch?v=AfysWtk5GSk

Cost me £30 from fasttech but you can get similar, less fancy ones for about £8.
Liquid costs are variable but my local paper shop sells 10ml for £2.50 which is about 4-5 days worth.

I didn't get on with the ones which look like cigarettes they sell in petrol stations and such at all.

benevans1989

Apples2 wrote: »

The bank were being vague to be kind, you have outlined above why you won't be getting a sensible loan.

Sort your only vice out for a start.
I was a 20 a day person when I went electronic.

It wasn't a one day transformation but I immediately drastically cut down. I went to one in three (1 cigarette to 2 x electronic) so a 60% saving straight away.
It took about 6 Months in total to never have, or want a cigarette again.

I use one of these
removed link cuz im a new user**
Cost me £30 from fasttech but you can get similar, less fancy ones for about £8.
Liquid costs are variable but my local paper shop sells 10ml for £2.50 which is about 4-5 days worth.

I didn't get on with the ones which look like cigarettes they sell in petrol stations and such at all.

Hey much appreciated.
Its something which most likely will be next on the list, ive quit the energy drink dependancy on my night shifts which stupidly was costing about 2 cans a night so prehaps £10 a week.(crazy i know... but you'll do anything)

i dont go out drinking anymore, just to provide the extra 50-60 a month. every little helps eh.

In regards to vague - i would rather know, just so i know what to do! I just feel a little helpless and frustraited..

Apples2

The vague part is the fact you have two defaults on your credit file.

You will not be accepted for anything like a sensible loan, you are in the Guarantor level of loans with HUGE interest rates.

I've never been a fan of cars on finance but I appreciate it is a popular method. We see an awful lot of sorry tales on here form people who overstretch themselves.

You are maintaining payments so stick with it, as difficult as it is. Further borrowing will be a very expensive mistake.

19lottie82

Defaults aside......

1 - How much do you currently owe?
2 - How much do you want to borrow?
3 - What's your current salary?

If 1+2 = more than 50% of 3 then rule of the thumb is a borrower won't lend to you

imoneyop

19lottie82 wrote: »

Defaults aside......

1 - How much do you currently owe?
2 - How much do you want to borrow?
3 - What's your current salary?

If 1+2 = more than 50% of 3 then rule of the thumb is a borrower won't lend to you

A quick calculation based on this

benevans1989 wrote: »

So Im paying 50 per month for cc 950
180 per month for old loan. i think about 1600 left on this(settlement is 1400) i called up..
130 per month for car over 4 years i think total cost is going to end up at, about 8,300( settlement is 5k)

my earning are 1350ish

Gives me

1- 7350
2 - I'm guessing 15kish
3 - About 16k

So, it's not going to happen even without the poor credit history.

imoneyop

hafa786 wrote: »

You should not miss this crazy idea because it is very useful for you.

1/10 must try harder - back to spammer 101 for you.

benevans1989

imoneyop wrote: »

A quick calculation based on this



Gives me

1- 7350
2 - I'm guessing 15kish
3 - About 16k

So, it's not going to happen even without the poor credit history.

I wanted, to borrow 7000 to pay cc loan, car - because truthfully it does save me money, over the next 4 years..

Prehaps ive been foolish to think after this much time i'd get another. Even if i had got on the right path. in making sure i never miss a payment etc.
I just need to find a way to free some money get the debts clear sooner.
I have appreciated the Input from you guys,
@apples, I think im going to have a look into the quitting, and to see where else i can shave off a few quid, perhaps from the shopping bill im sure, and even try and drive a little lighter of foot.

At what point would it be worth trying again 6 months perhaps ? i KNOW i know, but if i got a better rate on the finance it would still save me money..