Unsecured Loan Bad Credit

MD94

Hi Guys,

I wanted to take out a unsecured loan of around 10K. My Credit is Bad but getting better. My credit history is not full of credit card loans and defaults, I am only 19 so only have a few DD's building up my credit report but not enough yet to be in the clear but very close to fair.

I wanted to take it out as when with my ex partner, whom we have a child together, unfortunately, she suffers from Mental health Illness and spending was out of control in the sense that such things as rent, c tax etc was not being paid and now im landed with a lot of repayments. Im currently paying more on repayments than bills each month and would probably be paying half each month to repay a loan if all were cleared and in one place.

Obviously the question is the best loan company to go to? I am due to go to Barclays (my bank) to see if they can give me a loan themselves which fingers crossed they will, but if that fails I was hoping some idea on good lenders that would accept under these circumstances.

Any help appreciated!

Oh, and repayments would be no issue, i've been in consistent employment since 16, not gaps and always been over £1000 each month.

Thanks.

Tixy

A £10k loan is a large amount on your salary.

What actually shows on your credit file currently? what accounts? what debts? any negatives/missed payments at all?

Have you tried negotiating with your creditors to reduce the payments you are making towards your arrears? You may find it useful to post on the debt free wannabe section of the forum and post up details of your outstanding debts and repayments and people may be able to advise on other options to a consolidation loan which may work out cheaper.

To answer the question regarding a loan - your own bank account is usually the best place for someone to try assuming that the current account has been run well (not going over any overdraft limit, not having items bounce etc).

dealer_wins

From your post I would say you have a slightly under zero chance of getting a £10K loan.

If you can cut down all spending to a minimum and pay as much as possible to the debts.

If you cant meet the repayments after cutting out all non-essential spending then its time to speak to a debt help charity/organisation.

[Deleted User]

What is the total of your current debts?

What is your gross annual salary?

Is your name linked to the current arrears, ie. Rent, CT, etc. ?

MD94

Thanks for the input. Well to give you a little background, i recently had an accident which kept me off work best part of last month and as such got a far lower wage for the month which has made things very difficult this month. I dont generally struggle to pay the debts but its cases such as this which make me look at all i'm paying off. I've got a couple of things on finance including now an overpayment with tax credits along other things, biggest being the rent at previous address. I also have an account with CTax now with the bailiffs that im paying off. Again, i dont struggle to pay them all off, but im paying so much each month that it would be a loan to consolidate all the debts. I'm paying around £500 in debts alone a month, not due to interest but due to the amount of different debts they are. Paying back a loan each month even for £350-£400 still leaves me better off each month and I wouldnt then have to worry as much if something went wrong as i know that i can meet the loan amount.

Long story short (funny as i've just explained the long story!). A loan would clear everything, leave me with one payment to pay off each month, and less to pay each month also. The final benefit of the loan would be that my credit would be good after it is paid off where as paying these payments to so many people will not actually help my credit at all in the end.

Let me know.

Gaz83

The problem is that if you have (say) debts of £10k, no bank is going to loan you another £10k on your current salary, regardless of your credit rating. The banks can't guarantee that you'll spend the £10k on other debts, so for all they'll know you'll end up with £20k debts.

KennethC

I wonder do you have a bank account I am presuming that you do, why not go down to your bank and tell them, they may just help you will a high interest loan, very much an outside chance, whatever you do do not go to a loan shark, you will get into more difficulty that you find yourself in now.

The CAB is also a place that could help, they have a link on the MSE site

Tixy

Whilst you may feel a loan would help on a monthly basis you may well find you are unable to get accepted for one.

Have you tried negotiating to reduce your current repayments? E.g. the rent you owe at an old address - as you don't live there any longer then you are not at risk of being homeless for not paying it. Try to negotiate a lower payment each month.

The council tax debt with bailiffs - have they been in your property at all? have they levied any of your possessions? If not then you might want to look in to whether you can get the debt transferred back to the council and arrange a lower repayment rate with them.

Is your ex partner in a position to help with repayments on the debts? If your ex partner's name is also on the ctax debt then given her MH issues that may help get the council to agree to take back the debt.

Depending on what other debts/repayments you are making then you may well be able to negotiate these down as well.

KennethC

Just re-read your original post, yes of course you do have a bank account (Barclay's) thy them and see, you have little to lose by doing so.