Declined on 'Affordability'. What now? Advice?

Gaz83

Declined on affordability. Advice?

Look to owe less, or look to earn more. It's that simple.

You have a gross wage of under £8k per year. You already owe more than your annual income. And your solution is to borrow another £10,000?

And you're incredulous that the bank won't consider this? No mainstream lender will. Based on your history and risk profile they will judge that you are far more likely to take the £10,000 and buy something shiny and the end up with nearly £19,000 in debt. Ignore the advice about getting yet another credit card - again, it's far more likely that you will just use it to make other purchases.

You need to sort out a Statement of Affairs as soon as possible and need to start snowballing your debt. Making idiotic decisions, like signing up for a £25 per month phone bill when you 'can't afford' to make any repayments bar the minimum towards your debt, need to stop. Otherwise your situation is just going to get worse.

Gaz83

Oh and quite simply, you need to get another job. You are obviously unsustainable on the income you have.

Seobaina

WOw, ok, I thought this forum was for help not attack! I Never said I was "incredulous that the bank won't consider this", in fact I said I wasn't surprised. I never contacted the bank about it in the first place, they contacted me!

As for losing my car and cycling, I already stated that I need my car for my other job so whilst I appreciate in theory this is a good idea, it is not practical.

I am good at managing my finances, I have debt yes but I pay on time and the only reason I'm not paying them off is that I don't earn enough. I don't drink, smoke, party, buy expensive clothes, etc. The reason I have debt is because I paid my way through two masters degrees and yes I did work whilst I did them and I worked two jobs during my undergraduate. The reason I'm considering/wanted £1000 safety is not to be frivolous but because with the loan on the rate I was being offered I would be no better off a month. I would simply have been better off in 5 years time. Therefore I still couldn't save any extra and I didn't want to be in a position where I suddenly had a huge dental or car bill and HAD to put money onto my credit cards. I wanted to be in a position where I could use some of that safety and pay back into it when I could (i.e. when I had overtime). I personally thought this was a considered and sensible measure, I'm sorry if you don't agree but with my circumstances it was the right move!

As for getting another job…yes I DO need to do this and I have been looking/applying but in this climate that is not as easy as you think.

I appreciate those that gave me sensible advice or tried too but if my finance troubles offend you then please refrain from commenting at all.

One poster suggested I try talking to Step Change and I think I will do that. I just thought people on here would understand and not judge without knowing all the information.

And if you did not mean these posts to be 'attacking' then I apologise but that is certainly how they come across.

Administrators - please delete the thread, thanks!

Phil_Linder

Seobaina wrote: »

WOw, ok, I thought this forum was for help not attack!

I agree. There really are some pompous people on here who believe putting people down is a way of helping or giving advice.

A lot of them are making good points and you should heed the facts. Its the attitudes of some which is not nice.


Cut her some slack people. If everyone knew everything about these situations they wouldn't ask for help on this website. Money worries can be sensitive and nobody needs to be condescended when seeking help and advice.

BillJones

Seobaina wrote: »

I am good at managing my finances, I have debt yes but I pay on time and the only reason I'm not paying them off is that I don't earn enough.

Jesus wept...

You owe more than a year's salary in unsecured loans, are only just keeping your head above water on minimum payments, and want to take on yet more debt.

Maybe you believe that this falls under "managing your finances well", but it really doesn't.

And no-one is attacking you, everyone is giving you what they believe to be honest, helpful advice. It does not sound as though you are willing to take it, though, which is a shame.

toastking

Might seem like a daft question... but do you have a lot of spare time on your hands working part time? If so then you could use that to earn some extra cash and use it all towards paying off the debts.

For instance I tend to earn £40 a quarter doing OnePoll surveys. If you pay more attention I think you could probably do it quicker and its really easy. Parents, smokers and drivers tend to get more but I am only a driver of those three.

There is an up your income board on here and if you're willing to put in the effort then you could use your time to make £50+ a month which would improve your money position and then you could pick and chose which ways keep the money rolling. Do you have any skills to freelance, you could surely put something together for Fiverr to get some extra cash.

27col

BillJones wrote: »

Jesus wept...

You owe more than a year's salary in unsecured loans, are only just keeping your head above water on minimum payments, and want to take on yet more debt.

Maybe you believe that this falls under "managing your finances well", but it really doesn't.

And no-one is attacking you, everyone is giving you what they believe to be honest, helpful advice. It does not sound as though you are willing to take it, though, which is a shame.

Couldn't have put it better myself Bill.

Gaz83

Seobaina wrote: »

I am good at managing my finances

I'm sorry, but you're not.

Your situation in a microcosm is summed up as follows:

You are currently paying £209 per month towards your debts. You can't afford to pay much more than this.

Your solution to this problem is to take on more debt and have repayments of £224 per month.

If you can't afford to pay much more than £209 per month, why are you even entertaining the idea of trying to find an agreement whereby you will pay £15 more than this every month?

Time for a change. Get a statement of account posted on the debt-free board. Contact Stepchange and explain you're having difficulty servicing your debts.

Monkeyballs

Hi Seobaina,

Yeah, I'm afraid you're heading for a hiding for nothing I'm afraid.

Have a read through your last post, you might get a moment of clarity...

To me it sounds you're at the edge of having what is called an LBM (light bulb moment) when you realise that something has to change and taking on more debt to repay your outstanding debt is not a good option even if on the face of it you're saving money in interest.

Contact Step Change and they will be able to run through an income and expenditures form with you (be realistic in your amounts) and they can run through some options with you - look into what these options are thoroughly (even discuss them on the call to SC) and don't rush in blindly.

It's great to have an emergency fund but instead of borrowing to put one in place try saving maybe £50 per month and it will soon add up.

Personally, I think you need to bite the bullet and just get a more stable income (even if it's just until your debts are in check) and I'd also suggest you look into the Debt free wannabe forum and post an SOA - people are a lot less judgmental on there (cos we're in the same boat).

Remember, you need to aim to repay as quickly as possible not free up income each month

Good luck!

MB

Cycrow

Seobaina wrote: »

I can't sell my car as there is no public transport out here and it would take me far too long to cycle to work. I also need a car for my freelance work.

Depending on how far it is, cycling can often be quicker than driving, especially during rush hour