Debt Consolidation

gemgem1_2

Im just looking for maybe advice and also some knowledge.

Me and my partner have between us a few different loans /credit cards that are adding up to a lot of out goings each month.



We don't still use them we have been trying to pay them off.



We are looking into a loan to consolidate both out debts into one easy to manage payment and both only have fair credit, just wondering if any one has any idea of what our chances of a loan for approx. 8-10,000 would be.

[Deleted User]

Depends on your debts, income and credit history.

TheMoney

Depends on your salary(ies) and credit limits on the cards. With consolidation lenders will be a little reserved due to the temptation of re-using the available credit on the cards once paid off.

gemgem1_2

would you say our best option is to go and speak to our bank to see what they advise?

TheMoney

Always approach your own bank first, gives you a good indication of your chance of success. They know how well you manage your accounts with them, and therefore are most likely to provide the lowest APR.
Always worth considering whether a joint or sole application is best, are you married or financially linked in any way?

gemgem1_2

Thank you for your help with this.


We are recently married. He is the one with the larger income which is quite a decent amount. We are looking into lowering into 1 smaller payment as we are trying to save for a mortgage but also I will soon have to come out of work for financial reasons with children.

Thrugelmir

gemgem1 wrote: »

would you say our best option is to go and speak to our bank to see what they advise?

Draw up a full budget , i.e. income and expenditure.

What can you do to address the problem? Banks won't be offering you an easy way out. As your problems were as a result of overspending. Something that you could easily fall back to doing.

TheMoney

Disagree with previous post, aslong as you have managed your credit within it's limits, made payments on time etc, you should be fine. I do agree with fully reviewing your income and expenditure and working out what you can afford to pay each month, then aiming to pay less than that so it leaves you a little extra to put away each month in case of emergency. You can always try checking through the loans section of this website, which gives you info on the cheapest ones available.

gemgem1_2

We have done a budget plan for the past year I have kept a diary so I have all our incoming and out going written down.


We have not recently used any of our credit as we are trying to pay them off so we can stop living hand to mouth each week.
I have worked out we can pay max of £350 back each month so only maybe looking at the loan over 4-5 year max from the loans iv looked into online (obviously depending on the interest ect..)

DCFC79

If your going to get a loan the you need to cut up the cards to prevent spending on them, watch how much you spend on groceries, cut your outgoings. Maybe post on the debt free board and post up a statement of affairs.

gemgem1_2

Thank you for your response.


We have not had the cards for the past 6months they have been cut up and binned.