Next Step Advice!

Messi1878

Hi there, I’m not 100% this is in the correct place but as long as it’s somewhere. I really need some advice on my next move and here’s my predicament.

Basically, I ran into a very tough point in my life earlier in the year and started overspending and living beyond my means. I’m not the first and I’m sure I’m sadly not the last. I regret it massively now of course but it’s done now.

I’m looking for a personal loan to wipe out the problems I’ve given myself but I’ve given myself a bad credit rating in the 550-600 region.

I took out a couple of payday loans (sigh) which I’m in the process of getting rid of. I also have three credit cards and an overdraft with my bank that I’m trying to pay back.

At the moment I’ve gotten myself into a cycle of covering myself with payday loans and using the spare cash after making the minimum payments on my credit card to get by.

My personal circumstances are not bad; I take home £1100 a month. I live at home so have no rent/mortgage commitments except from the money I give my parents monthly in the £150-200 region. I also don’t drive and I have no dependents.

So making any repayments on a loan is not a problem, but getting the loan in the first place seems to be. If I can use a £2500-3000 loan to pay off these high interest debts I will have no issue paying back that loan, and more than likely paying it back early!

Can somebody advise me on what I can do to get out of this mess I created? Surely with those circumstances I should be able to get a loan to clear those and have just the one to repay back?

Going to my parents or family is not an option as they have no idea about my predicament and won’t be understanding about it either. I’d like to avoid asking for their help at all costs.

If I can provide any more information to help people assist me.

Herzlos

Try snowballing first - throw all your money at the most expensive debt and so on. If you've got a bad rating, then borrowing to pay it all off will probably not work out very well.

Messi1878

Thanks for replying, how would that work with the payday loans? If I could borrow I could literally clear everything and just have the one payment which would probably take me very little time to clear.

Pixie5740

Stop borrowing money. Borrowing money will not wipe out your problems, you will still owe the money, just to someone else.

At the moment going by what you've said about you are a high risk borrower and the only lenders willing to lend you any money will be the pay day loan companies with very high interest rates. You won't get the 3.6% APR headline rate you see advertised on the high street. So you'll be no better off than you are now.

Try putting together a statement of affairs. See what you can cut back on, see how much you realistically put towards debt repayment and forget about further borrowing. You live at home with very few outgoings so you should have a decent amount of money to put towards debt repayment.

If you find you are really struggling to keep up with your debt repayments contact one of the debt charities such as CAP UK, National Debtline or Step Change.

Oh and your credit score is meaningless. It's not seen by lenders, they go on affordability and your credit history so I hope you're not paying money for this "score".