Advise please re consolidation!

Sequinracetrack

Hello,

My husband and I want to consolidate out many debts which are spread out over 6 credit cards and various store cards and 2500 remaining on a joint loan.

We owe total amount of £22000.

Monthly this is costing us £918.

We want to consolidate into a loan over 4 years as this will save us money in the long run.

The problem is that having just run the eligibility calculator, it has come out at 0% chance for any lender.

I understand that we owe so many scattered debts that no one is going to be happy to lend to us but what can we do?

We are not keen on taking a secured loan as it seems very risky.

We do own our own house but have only just come out of negative equity, having taken a 100% mortgage in 2007. Mortgage is just at 106000 and house is worth 110000 and our lender is Engage credit so they will not do remorgages etc and i believe no other lender will touch us either with so little equity and so much debt.

There must be a better way as at the moment it doesnt seem like we are getting any closer to clearing this debt.

If anyone could offer any advice we would be very grateful.

Many thanks,

Vikki x

DCFC79

Go on over to the debt free wannabe board (which is next 1 down) and post up an SOA (a statement of affairs/ its a breakdown of your spending ), look at your outgoings and cut back, pay off the cards with the highest apr. Maybe default would be an option, maybe its doable without defaulting but those on the dfw will advise.

Whether you can get a loan will depend on your salaries, consolidation hardly works anyway.

tell_it_how_it_is

Depends on what works best for you.

For example, you could use the snowball method - pay the minimum off most, but pay extra on the debts with the highest APR.

Or, you could have the mindset where you pay extra on the smallest value debts to clear them off - that might work for you best psychologically, seeing 8 debts become 7, then 6 etc.

Whichever way decide, you will indeed probably have to reduce the debt somewhat before you could consider consolidation to reduce interest.

Good luck.

Caz3121

part of the problem with consolidation loan is that there is no guarantee that you will use the money to pay off the cards (or not run them up again) so you would be asking for £22k on top of an existing £22k so a total of £44k of debt which would require a significant salary to qualify for.
You may find that as you pay a card off they may offer you a 0% on balance transfers
SOA will be the way to go for advice.

12_month_challenge

Hi
I too am in a similar situation to yours and saw no way out.
Since yesterday I have learned so much and had some great advice on here.
I have juggled CCs around and done a snowball of them, It shows with discipline and hard work I can clear them in approx 33 months

I too have consolidated in the past (badly) and yet still I have a mountain of debt to climb. It does'nt always work.

However you will get some great tips and advice on here so stick around

Good luck

DCFC79

12_month_challenge wrote: »

Hi
I too am in a similar situation to yours and saw no way out.
Since yesterday I have learned so much and had some great advice on here.
I have juggled CCs around and done a snowball of them, It shows with discipline and hard work I can clear them in approx 33 months

I too have consolidated in the past (badly) and yet still I have a mountain of debt to climb. It does'nt always work.

However you will get some great tips and advice on here so stick around

Good luck

Well done, good luck with reducing it.

Sequinracetrack

Thanks for all your replies.

Sorry to sound stupid, but is there a template for the soa? I had a look but couldnt see one, or do i just write up an incomings and out goings and post it up for other money savers to comment and advise on?

Thanks again xx

jonesMUFCforever

Sequinracetrack wrote: »

Thanks for all your replies.

Sorry to sound stupid, but is there a template for the soa? I had a look but couldnt see one, or do i just write up an incomings and out goings and post it up for other money savers to comment and advise on?

Thanks again xx

Easiest way is a plain piece of paper - write everything you pay out down to that packet of fags or a newspaper.
When you write it down and see where your money goes it it easier to cut out some of the money wasted every month - eg do you really watch ALL those Sky channels - could you downgrade your package for example etc.

Money_maker

Sequinracetrack wrote: »

Thanks for all your replies.

Sorry to sound stupid, but is there a template for the soa? I had a look but couldnt see one, or do i just write up an incomings and out goings and post it up for other money savers to comment and advise on?

Thanks again xx

Here is the link http://www.stoozing.com/calculator/soa.php for the SOA. Start a new thread on the debt-free wannabee board and the peeps over there will work miracles. Good luck, you can do it.

12_month_challenge

Someone posted me the link to the SOA yesterday I was nearly too embarrassed to post it on here.

So glad I did because already, I have my head out of the sand and looking forward to the challenge.
Not once on here have I been judged I have received only good valuable advice.

It really makes you see exactly where your money goes

Good luck

Thrugelmir

Sequinracetrack wrote: »

We are not keen on taking a secured loan as it seems very risky.

Nor do you have the equity to provide the security for the debt with.

Adding to the good comments that already been posted. Become a Scrooge when it comes to money management. Every £ you can use to reduce your debt will help. There's no quick and easy answers. Down to you and your commitment to persevere through thick and thin.