Loan debt advice

artfulldodger86

Hello,

I am just after a bit of advice. I currently have two loans that total £6500 to repay over the next few years. This was basically taken out to cover solicitors fees during a move.

I am now living alone in rented accomodation and want to consolidate these down into one monthly low payment. i have tried online but keep getting refused. Any help please?

do i go to the bank?

R_P_W

Why do you think having one loan will equal a low payment?

What apr are you paying?

Tixy

How many online applications have you made recently for this loan?

Are the current loans with 2 different providers?

How much are you paying on each and what is the remaining term on each?

BillJones

The language "low monthly payment" is quite reminiscent of the old adverts by companies who wanted you to pay them lots of interest over a long period, instead of paying interest to your current lender. They were not suggesting it because they thought it was good for the borrower...

Without more details, it's hard to know why you are being refused, but a common reason would be affordability. Any lender will tend to err on the side of caution, and assume that you will be taking out the new loan and then not repaying the old one. They'll therefore judge the application on the total of the two loans, which in your case, I assume, will be close to £13,000.

Unless you earn over £26,000, you may find it hard to have a lender accommodate your needs.

As above, though, why do you think that your new loan will be a low payment? Are you planning to spread it over a much longer period (meaning that you pay far more interest overall), or do you believe that your situation is improved enough now that you'll be offered a low APR?

Anyway, notwithstanding the above, your best bet may well be your own bank. They know you, can see your spending habits, so don't have to make as many assumptions as other institutions, and therefore may be able to help.

longtermplanner

What you can do (if anything) depends on why the loan was turned down, there is a discussion of the various possibilities here: http://debtcamel.co.uk/debt-consolidation-refused/