How does a stay-at-home parent take out a loan?

27col

suicidebob wrote: »

That's fairly obvious. I asked the question to provoke the OP to giving a little more detail.

This is going to be one of the shy ones I suspect.

Apples2

If you rack up that kind of debt with that secret income it is more of an outgoing than an income.

thriftylass

SuffolkMumOfTwo wrote: »

When all the loan companies want an employer?

I have a regular private income but that isn't acceptable on an application form. I want to consolidate some smaller debts of up to £7,000. At the moment I am paying a small fortune in interest. I need to get this down. I went to my own bank but their interest rates were horrendous.

Is there anyone that is prepared to lend to someone that has a private income instead of a salary? They were happy to lend me the credit card last year, now they're not so keen.

First problem might be the private income if it doesn't count as proof. (how did you get the other loans?)

Second problem is that you try to borrow another 7 grand (14k in total) with no proven income. You might want to use that money to consolidate smaller loans but the bank has no guarantee that you will and only see that you want to borrow another 7 grand.

SuffolkMumOfTwo

Ok, if I have to completely humiliate myself I might as well go the whole hog.

I receive £300 allowance a month from my husband. It was agreed when we decided to have children that I would give up my job and stay at home and he would support me financially. Which he does. He pays all the bills, he transfers the money into a joint account which I have access to for household stuff. That account is fine. Then he transfers some into my account so I can pay my pension, phone bill, just my own stuff that I had already. He knows I've got a small credit card. He doesn't know about the rest. He would kill me. Not literally. I can't tell him. I need to try and settle this myself. I've already put the pension on hold. I can't cancel the phone contract, but I need a phone and it's not a lot anyway. The rest goes on my credit cards and a loan. There is nothing to cut down on, that's it.

If I could consolidate it into one loan that I can't then spend out on it would be great. Credit cards are useless, I pay some off and then spend it again.

I can't work because we have absolutely no childcare. Anything I could earn would be spent on a nanny or childminder.

I am stuck paying shitloads of interest for god knows how many years. I appreciate I've !!!!ed up so please lay off the !!!!taking.

jonesMUFCforever

We are not taking the michael - honest.
However from what you have posted you stand no chance of getting any loan from a bank let alone one for £7k.

IMO you have 2 options - carry on as you are and struggle on with repayments or come clean with hubby and see if he can/will help.

Good luck with whatever you decide.

forgotmyname

I wouldnt class that as a private income. If your partner lost his job then you would lose your money also.

If you think your humilitating yourself then thats obviously what you think of yourself and your position. Nobody else has said anything negative.

But at £300 a month your going to struggle to get £7000 at a decent rate, Unless your partner applies.

Ive been in the debt circle and it was bad. Probably worse than your situation. But life moves on.

If your not claiming benefits then a part time job even a few hours will bring in some money to put towards the debts.

You can say staying at home is making you lazy or not taxing your brain so you need a few hours out of the house.

If you post up your outgoings then people can advise. But if you dont tell the truth then the help wont be accurate and could be worse for you.

Nobody here knows you so be truthful.

Pixie5740

SuffolkMumOfTwo wrote: »

Ok, if I have to completely humiliate myself I might as well go the whole hog.

I receive £300 allowance a month from my husband. It was agreed when we decided to have children that I would give up my job and stay at home and he would support me financially. Which he does. He pays all the bills, he transfers the money into a joint account which I have access to for household stuff. That account is fine. Then he transfers some into my account so I can pay my pension, phone bill, just my own stuff that I had already. He knows I've got a small credit card. He doesn't know about the rest. He would kill me. Not literally. I can't tell him. I need to try and settle this myself. I've already put the pension on hold. I can't cancel the phone contract, but I need a phone and it's not a lot anyway. The rest goes on my credit cards and a loan. There is nothing to cut down on, that's it.

If I could consolidate it into one loan that I can't then spend out on it would be great. Credit cards are useless, I pay some off and then spend it again.

I can't work because we have absolutely no childcare. Anything I could earn would be spent on a nanny or childminder.

I am stuck paying shitloads of interest for god knows how many years. I appreciate I've !!!!ed up so please lay off the !!!!taking.

I don't know why you're feeling humiliated. I think that stems from you rather than anything anyone has posted here.

As has already been said, without an income from employment, self-employment or possibly benefits (are you claiming everything you're entitled to? Child benefit, WTC, etc?) you aren't going to get a loan anywhere. At least not anywhere offering cheaper interest rates than you're already paying.

How were the existing debts accrued? Whilst you were working or during your time as a stay-at-home mum?

You either go on as you are or talk to your husband. Talking to your husband probably won't be anywhere near as bad as you imagine it's going to be.

Tixy

Hi

As said getting more credit is very unlikely to be an option. I think you have 3 choices

1) discuss with your husband, explain where the money has been spent, was it on personal expenditure or household expenditure? if the latter then talk through with him that the money paid to the joint account and to you is insufficient and you need to both re look at your budget.

2) get some other income - e.g. part time work perhaps evenings/weekends or when OH is at home and slowly start to pay more to your debts.

3) consider speaking to one of the debt advice charities about defaulting on the existing debts and setting up reduced repayment plans. However doing so will have an impact on both your credit file, and as you have a joint account also on OHs credit file and ability to get credit. I would not recommend you do this without him being aware.

In terms of the credit cards - it is easy to prevent yourself from spending on it by cutting up the cards. However if you are still spending on it then you will need to rejig your budget and look at whether those purchases are essential.

Foxy-Stoat_3

If you post up all balances including the interest then some folk on here will be able to work out how many years it will take you to pay off....but if your using your credit card then it will never be paid off.

Tixy's post sets out the only options, the first will be the best and only option really as I'd imagine that you are worrying about this the whole time and must be having a negative effect on the relationship and to be honest, £7,000 loan with a reasonable rate over 4 or 5 years isn't going to bankrupt anyone so your Husband could take out a loan but make sure he takes over your credit cards and cancels them.

Also if you continue to take money from your Husband for your "pension" for the next 5/10/15/20 years and him find out when your 60 that you didn't pay into your pension will put you both under increased financial and emotional strain....If it were me I would be saying, why the F did you not tell me about this when I could of sorted it out easily.

I think you need to have a sit down with your Husband as you are a partnership and he will understand.

Good lucks

CHR15

A friend of mine found out his wife (stay at home mum) owed16k on credit cards.
yes he blew a gasket but most of his anger was toward the companies who allowed his wife to spend so much.

they cancelled a holiday, put off a bit of home improvements and cleared the debts together.

he would have been more angry if he had carried on spending on holidays and unnecessary luxuries whilst the debt continued to grow.

own up, face the music and get out of debt, not further into debt.