Need a loan to consolidate a 15k credit card balance but been refused...

TheAnalyst

Further to a previous thread which can be seen here

https://forums.moneysavingexpert.com/discussion/comment/65275271#Comment_65275271


Essentially been supporting my partner through her nursing degree for the last 3 years, during this time we also had a son who is now two and a bit of overspending if i'm completely honest has left me with a little over 15k between 3 credit cards that have just come to the end of their interest free periods.

In December I (sole application) was accepted by Sainsburys in principle for a £15k loan but then declined after underwriting.

I'm in the position now that the interest on my three credit cards is now costing me nearly £300 a month alone so this equates to over £600 a month im paying to them. I'm unable to transfer to another card as have been refused on two recent applications for BT cards, to be honest ideally I'd never take another credit card again if I could help it.

The only way I see out of this is a loan to clear (and allow me to finally cut up) the cards.

My credit is not what I would consider bad, I have a long term job earning £38k, one late payment in the last year but never missed a payment on my mortgage (which I've had for 5 years) or anything else, have car finance which was no problem getting, I think it's just that these cards are so near their limits and ultimately they have a high combined balance.

My partner suggested re-applying for a join loan this time. She's started work this year and (now she's a qualified staff nurse) earns 22k which gives a combined income of just under £60k. Her credit rating is excellent having never missed a payment, like me owns her own property and has done for years, one settled credit card, mobile and car finance.

We just want to clear this amount into one smaller payment which frees up money for savings with the aim to sell both our properties in the not too distant and purchase a house with the help to buy scheme sometime next year hopefully.

Anyone have any idea if turning this into a join application is likely to swing the decision, I don't want to waste a search if it's unlikely to help but I cant go on paying £300 a month in interest, it's just throwing money away!

ch3101

Remember, you're applying for a 15k loan with 15k already outstanding on cards AND car finance. How much is your car finance?

So sainsburies or any other lender will look at it as though you will then have >£30k of debt. On a salary of 38k that's far too much.

Vikipollard

Likely that even a joint application would hit the stumbling blocks as >£30k debt against £57k joint income.


Can you post up an SOA to see where some savings could be made and then throw the extra at the highest % rate card?

CLAPTON

maybe best if she applies for a 0% BT credit card to reduce the interest on some of the debt

in addition to the 15k on CCs do you have any other debts?
what debts are in her name?

Pixie5740

Snowballing your debt is probably going to be the quickest and cheapest way for you to get out of debt.

TheAnalyst

It's so frustrating though, the whole paint of the loan is so I can clear and close the credit card accounts, is there no way to contact them prior to applying to try an assure them of this?

My partners car is 11k, mine is 19k. My previous car was on finance to the tune of 16k and I paid it off about 2 years ago with no missed payments.

My salary is actually £38k and hers £22k so it's actually a little over £60k combined.

A 15k loan with Tesco bank is only going to cost £280 which is less than half what im paying at the moment to the credit cards.

ARGHHHH :mad:

Caz3121

TheAnalyst wrote: »

My partners car is 11k, mine is 19k.

Is this the amounts on finance? (on top of the cards)

TheAnalyst

Caz3121 wrote: »

Is this the amounts on finance? (on top of the cards)

Yes, my car costs me about £350 a month and hers £260.

jonesMUFCforever

Oh my!!


Please pop over to the debt free wanabe board or sell some stuff!

CLAPTON

so your debs are 15k+ 19K = 34k on a salary of 38k?
and hers are 11k on a salary of 22k


Although nothing is impossible you are unlikely to get a loan with such a high level of debts

as I've said maybe she could try for a 0% CC which might help a little

but basically you need to stop spending and start a serious budgeting period for the next couple of years

the debt free wannabe board is very good for ideas and support

tell_it_how_it_is

Could be the light bulb moment. Living off credit is bad, and expensive!

Think you need to do an SOA, and rein in the spending for a few months, allowing you to get those cc levels down (snowball method).

Maybe in 6-12 months, when the debt is reduced, you could then get a single loan to wipe them out.

After which, switch the mindset to saving.

And if your credit cards aren't cut up, I'd do that (or only leave one available at most).

PS Is selling one of the properties now a viable option?