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

TheAnalyst

Yes I've overspent by 5k a year for the last 3 years, this was on one salary paying for everything + a nice lifestyle (which in hindsight was not clever, no)

We now bring in circa 3600 a month between us, after pensions.

Total outgoings for mortgage, bills, cars and what not (not including credit cards) are somewhere around the £1900 mark.

So this leaves about £1700 a month, of which £600 is going towards the credit cards.

The rest is food, petrol, clothes & sundries and entertainment...

It's not that I cant afford to pay the £600 a month towards the credit cards it's that £300 of that is interest and it's killing me when a a 5 year loan could be less than half that and allow us immediately to save that £300 a month away (plus more as we're really looking at curbing unnecessary stuff from now to allow more savings)

I repeat, it's not that we cannot afford the current payments, we can but it's like throwing money down the drain and we are just desperate for an opportunity to re-finance.


What is the point in offering "consolidation" as a loan purpose as all the lenders do when you wont lend someone an amount of money equal to current borrowing to allow them to "consolidate" that debt!?? I don't get it, really.

CLAPTON

TheAnalyst wrote: »

Yes I've overspent by 5k a year for the last 3 years, this was on one salary paying for everything + a nice lifestyle (which in hindsight was not clever, no)

We now bring in circa 3600 a month between us, after pensions.

Total outgoings for mortgage, bills, cars and what not (not including credit cards) are somewhere around the £1900 mark.

So this leaves about £1700 a month, of which £600 is going towards the credit cards.

The rest is food, petrol, clothes & sundries and entertainment...

It's not that I cant afford to pay the £600 a month towards the credit cards it's that £300 of that is interest and it's killing me when a a 5 year loan could be less than half that and allow us immediately to save that £300 a month away (plus more as we're really looking at curbing unnecessary stuff from now to allow more savings)

I repeat, it's not that we cannot afford the current payments, we can but it's like throwing money down the drain and we are just desperate for an opportunity to re-finance.


What is the point in offering "consolidation" as a loan purpose as all the lenders do when you wont lend someone an amount of money equal to current borrowing to allow them to "consolidate" that debt!?? I don't get it, really.

the reality is that your debts are very high is relation to your income and so you are seen as a high risk

if you apply for another 15k they would 'see ' your debts as an extra 15k because there is no guarantee that you will actually pay off the CCs.

look for ways of increasing the amount you pay off the debts more quickly

Wilkins

TheAnalyst wrote: »

I repeat, it's not that we cannot afford the current payments, we can but it's like throwing money down the drain and we are just desperate for an opportunity to re-finance.

Oh dear. I am afraid that you are going to have to accept the fact that the only evidence prospective lenders have about you is that you have mismanaged your finances and that they are not likely to accept your good intentions. If your partner can help with a consolidation loan, good luck to you; but essentially you have to go into ruthless savings mode, otherwise your current manageable situation may reach an unmanageable tipping point. If you snowball your debts those "wasted payments" will soon decline.

TheAnalyst

Thanks everyone for all the good advice, it's just frustrating.

tell_it_how_it_is wrote: »

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

The plan all along was to sell up and move into rented as we cant get on the help2buy scheme while either of us still owns a property.

Regarding your question, best case scenario I have maybe £20-25k equity in my flat and my partner maybe £10k, after fees would probably leave £25-30k, we could move into rented short term, clear off the credit cards and probably have just enough for our 5% deposit and fees, we could quickly build that up while in rented too with no CC debt and a strict change of spending habit.

Maybe the best way forward to be honest.

ch3101

Why go to the lengths of selling your houses?

Post an SOA and people can suggest how you could cut spending.

How about a downgrade on the cars?

Could easily get 15k from there?

Big_Tree

TheAnalyst wrote: »

I repeat, it's not that we cannot afford the current payments, we can but it's like throwing money down the drain and we are just desperate for an opportunity to re-finance.

You must keep this thought in your head the next time you fell like living for an extended period on other peoples money....

TheAnalyst

ch3101 wrote: »

Why go to the lengths of selling your houses?

Post an SOA and people can suggest how you could cut spending.

How about a downgrade on the cars?

Could easily get 15k from there?

We wanted to sell up anyway this year (we both own our own flats, hers is rented) to enable us to buy a new house next year anyway.

Thrugelmir

TheAnalyst wrote: »

We wanted to sell up anyway this year (we both own our own flats, hers is rented) to enable us to buy a new house next year anyway.

You need to deal with the problems you already have. Rather than planning on spending yet more money. Your above statement sums up why lenders are no longer willing to play ball.

chesky

So you want to take advantage of a scheme which was brought in to help first time buyers. And to do this you have to sell TWO properties.

Nice!

Enterprise_1701C

Just thinking - £1100 a month is a LOT to spend, can't you cut some of that down and throw more at the credit cards? It would make a big difference.

How long have you got left on the finance for your car? Do you need an expensive car, could you sell it, pay off the finance and buy a little runaround for a while?