Loans and credit scores

[Deleted User]

Hello everyone,

I am a debt free wanna be and in the last few months have made huge changes. No more credit cards being used, all cash only and spending habits changed once a for all!

I need to get a consolidation loan to ease the bill payments each month and start saving. I am currently paying near £1k in debt alone. Although my credit scores are all above 700 but because I am using a large amount of credit (nearly £18k), no-one will look at me for a loan. Thing is, I can afford it (albeit it it's all very tight), I am just trying to make things easier!

Please can anyone tell me what my options are? I am good for the money and have never missed a repayment.

Thanks

[Deleted User]

Unless you have a very high income, you won't get a loan of anything approaching that. If your credit history is good, you may be able to get a BT offer for a small amount, but it won't be for much.

Your only real option is to cut costs and pay as much as you can towards the debts. Visit the DFW board for inspiration.

Tixy

As zx says, you will likely find it difficult to get accepted for a loan that size on top of your existing debt.

Lenders are cautious with lending and will assume a worse case scenario that you don't use the loan to repay your existing debts and end up having to service both the new loan and your current debts.

If you owe a lot to one particular lender they may be slightly easier to borrow from (as they can ensure you do pay off any existing debt with them/withdraw facilities etc).

In terms of your existing debts are you snowballing your payments and targetting the most expensive first?

Pay off your existing debt before starting to save.

[Deleted User]

I am trying the snowballing but only have very small disposable income, if any some months so it is difficult to do! At a minimum, it would be a massive help to get my hands on £5k as it would massively ease the burden! It's just far too easy to get in to debt, but then when you do get to grips with it, far to difficult to get out of. Thanks for the replies

Pixie5740

STOP BORROWING MONEY. It's what got you into this mess so it's not going to get you out of it. The debt free wannabe (DFW) board is full of people who tried to consolidate only to end up back at square one with twice as much debt.

To successfully snowball you'll need to increase your income, decrease your expenditure or both. Put together a statement of affairs and post it up on the DFW board for support and advice.

http://www.stoozing.com/calculator/soa.php

DCFC79

What steps have you made with the situation ?

Have you looked at utility bills and got on cheaper tarriffs, cancelled sky etc ?

James_B.

[Deleted User] wrote:

I am trying the snowballing but only have very small disposable income, if any some months so it is difficult to do! At a minimum, it would be a massive help to get my hands on £5k as it would massively ease the burden!

How would it help if that £5k was a loan, though? Why do you think that borrowing more money is the answer to your problems, when your problem seems to be that you owe too much money?

You need to increase your earnings, reduce your spending, or both.

Jessica88

James_B. is right, you need to start new. Borrowing more money doesn't solve your problems.. you will get just bigger.. unfortunately...