Loan Advice Needed

mrstrouble

Hi All

I am looking for some advice please. I am retired and get a pension of around £12688 a year and I am a council tenant.

My son got in to financial trouble due to his business failing and I have had to pay off what he owed to everyone and I am now thinking of consolidating my finances in to 1 loan but unsure if this is possible?

I have a good credit record and have never missed any payments or been late paying any in my life.

I currently owe -
My Bank Loan - £8500
My Bank Credit Card - £4670
My Bank Overdraft - £300

What do you think my options will be here as I would like to consolidate so I am just paying 1 payment each month with a set interest rate. Would it be possible to refinance based on my income and what I already owe?

Thanks for any advice in advance:)

TadleyBaggie

Highly unlikely. The general rule of thumb is that lenders will usually lend up to 50% of income, in your case that would be £6K or so. Since your borrowing is already in excess of 100% you are going to be seen as already overextended.

Pixie5740

You might find it difficult to get a loan large enough to consolidate your debts. Your best bet would probably be whoever you currently bank with.

Another solution would be to snowball your debts (target your payments to reduce the total amount of interest paid). This calculator would give you an idea of how your snowball would go.

http://www.whatsthecost.com/snowball.aspx

mrstrouble

Thank you for your replies and advice I will look at snowballing now:)

BillJones

I assume, also, that your Son is in (or actively seeking) a decent salaried job, and will pay you back as soon as he is able?

dealer_wins

BillJones wrote: »

I assume, also, that your Son is in (or actively seeking) a decent salaried job, and will pay you back as soon as he is able?

Exactly, I get the impression the son doesnt really care that they have put their retired dad in a situation where there is pressure on his income, at a time when her should be enjoying a bit of life and spending!!

OP it should be your son that is looking to take out a "consolidation loan" and hand you every penny that you have spent bailing him out in his hour of need. And if he cant get a loan, he should be working hard and making all your credit payments!

If that were me I would be working 18 hour days and living on baked beans on toast until I had repaid every penny.

DCFC79

The overdraft should be the first to go as the bank could recall it at anytime.

Tixy

As these monies are all owed to your own bank they may be willing to consolidate them all in to one loan (as they will not be increasing the overall debt you owe to them).

You might want to try talking to your bank and explaining that you would like to consolidate the 3 debts (I would do this in person rather than through an online application).

If they do offer you a loan then obviously watch out for what APR they will charge and how the compares to the APRs you are paying for each debt currently.

dresdendave

mrstrouble wrote: »

Hi All


My son got in to financial trouble due to his business failing and I have had to pay off what he owed to everyone

If it was your son's business why are you responsible for settling the debts?


Were you a guarantor for loans he took out?, if so then presumably you were aware of the potential risk?


If not, then shouldn't your son be sorting out his own mess?