nationwide quote

sparky_si

Hi there I am thinking about consolidating all my debt into a lower monthly payment and did a soft search with nationwide for £16500 over 5 years and it came up with 15.4% and £393 per month which is a damn sight lower than what I'm paying at the moment.

Just wondering what my chances would be of securing this loan?

Cheers

andyfromotley

Sounds good, it looks like they have done a search and fancy you at that apr. i assume if there was anything horrid you wouldn't have gotten a quote at all out of them?

sparky_si

I suppose just concerned if I don't get accepted that's all, are there many others that have been accepted at that rate before?

I haven't missed a payment for about 8 years and got 1 credit card with 2800 on it up to its max and 1 loan of my own with 3600 left on it and a joint loan with my wife which has 7800 left on it and I earn just under 30000 a year.

What do you guys think of no chances?

uncreative

You are replacing £14,200 of debt with £16,500 of debt which I can never advocate. What do you need the extra £2,300 for?

If I were you I would be trying to refinance, for example, £12,000 and tackling the balance in a 3 month burst. To refinance and "add a bit on" doesnt make the best sense for me. You are adding to your debt rather than paying it off, and then committing yourself to paying it off over a longer period thus increasing the overall paid as well.

£393 per month for 5 years is a total repayable of £23,580!

sparky_si

I understand that completely but I'm going to pay some of my wife's little hire purchases off so it's getting used purely for debt and the reason I want to do this is I have my second child on the way and want to make things a lot more manageable.

Thanks for your reply it does make sense

uncreative

No worries, if you are comfortable with the payment then fair enough. Its important you go into it with your eyes open.

Make sure you close old and unneeded credit cards etc.. and leave yourself with as little opportunity as possible not to fall into the classic debt consolidation trap of racking up more on your existing facilities.

From experience, spending only gets worse when number 2 comes along. Number 3 is when it starts to get really scary!

sparky_si

Cheers the credit card will be the first thing to go just worried that I won't get accepted which will then make it harder to get it elsewhere

Thanks for your replies

TadleyBaggie

Unless your income in excess of £60K you could be struggling to get the loan. The lender will see you have £14K of debt and wants to get another 16K.

sparky_si

Would the lender not take this into consideration?

Also would this not show up on the soft search?

fozmcfc

Lenders have no way of telling if you are going to use the money, to pay off other debt.

You could get 16.5k and have a nice luxury holiday with it, so they will see it as 30k of debt.

Your chances could increase if a lot of the debt is with Nationwide and you went in and discussed it with them and agreed to set up and pay off cards/loans with them and close the card accounts.

Consolidation only works if you stop overspending and cut up cards. Many of us know from bitter experience what happens if you don't.

With a second baby on the way there will always be the chance of unexpected expenses or to hell with it let's treat the baby to that.

Pixie5740

Is an APR of 15.4% lower than the APRs of your current debts?