I was denied a loan

MABLE

Normally never good idea to borrow for holidays. However we are doing just that. We have a 0% credit card for purchases for 12 months and plan on putting the cost of the holiday on that but with us the holiday will be paid off before we actually go.

shortcrust

craigyjr wrote: »

hello i rang my bank up lloyds too ask for a loan and i was denied because i am only on government benefits i receive enhanced rate mobility and care on pip and i get couples rate ESA aswell as my girlfriends carers allowance in my bank. i was wanting too consolidate all my debt and have a family holiday but it feels like i've been discriminated against, the guy on the phone said he could see i had more than enough income too cover the loan but he couldnt give me it cause it was on government benefits

But the times they are a changing. Who knows how far the benefit cuts may be taken. If I were you I'd be planning for stormy seas ahead rather than a lovely summer holiday.

wiltsguy_2

shortcrust wrote: »

But the times they are a changing. Who knows how far the benefit cuts may be taken. If I were you I'd be planning for stormy seas ahead rather than a lovely summer holiday.

The fact that benefits can pay for holidays is justification for cuts in my eyes........

HappyMJ

19lottie82 wrote: »

whats your total annual income? and debts?

take your existing debt, add on what you want to borrow (even if it is to consolidate. if this is more than 50% of your annual income, then that's why they won't lend to you.

It can be much higher. I have unsecured debts that exceed my total annual gross income all at very low interest rates. It's down to affordability really. I can afford it....I really doubt someone on benefits could. Spending priorities are living expenses first then if anything left debt repayments.

RuthnJasper

I got a consolidation loan some years ago. I was younger and not sensible enough to use it properly. I also paid for a holiday at the same time with a credit card 'cheque'. None of this ended well. I ended up in an IVA for 6 years.

Never again. OP, save up the money for your holiday. Or just stay at home and go for picnics and nice days out.

19lottie82

HappyMJ wrote: »

It can be much higher. I have unsecured debts that exceed my total annual gross income all at very low interest rates. It's down to affordability really. I can afford it....I really doubt someone on benefits could. Spending priorities are living expenses first then if anything left debt repayments.

Yes, you're right, but it's a good rule of thumb formula.

poppasmurf_bewdley

If you can cover the loan payment(s), why have you got debts in the first place?

Any benefits can be removed very easily, as many on the Benefits Board will testify, so can hardly be regarded as a reliable source of income.

chesky

Benefits are never supposed to pay for debt. Which is why when people are on benefits it's common practice to offer £1 per month for each debt as debt collectors etc all know that if it went to court, they wouldn't stand much of a chance of getting more. The only exception is council tax.

chesky

Sorry, should have added the difference between priority (like rent) and non priority (credit, store cards, bank loans etc).

shane1104

harryfrombarry wrote: »

Great, so my tax pays for your holidays.

or is it my tax?!


hmm! i see a small claims court idea for him using my "hard earned" money to go to Benidorm! :P