Consolidation Loan & Car Finance at the same time? Advice Please

dunnc64_2

Hi All,

As the title says really. I am currently awaiting for my credit file to be updated after paying off over £6500 worth of debt early last month, experian advise it will be any day now, so I should have either a low Excellent rating or a mid to high Good rating.

I have a loan with Natwest which is down from £20k to £4500 (within 2 years) by over paying a good chunk this year, but I have racked up some credit card debts to which are now at £13,000 - I have cleared about £2000 of these last month also. I am currently paying around £510 for the natwest loan and £440 on the credit cards - with interest payments being around £280 per month being added to the debt.

So I am paying currently over £950 per month on these, which I can afford, but it would be nice to free some up and restructure (it is a joint debt with my wife)

I have been preliminary accepted for a 5 year loan with natwest, which will lower payments to around £330 at 8.9 % (hoping I will get a better rate once my credit rating updates, but 8.9 isnt too bad)

BUT - I have been offered a fantastic deal from vauxhall for a new car, which I will need finance from them on (ive had several cars from them in the past) - but I need to try and get both in a couple of days?? Is this feasible - is there a tactic to better my chances? i.e apply for both within a couple of days, or the same day?

I will be overpaying on the new loan also. Any advice will be grateful before I apply. Thank you

Kind Regards

Dunnc64

[Deleted User]

It all depends on your debts, income and credit history.

Not your score, or good/excellent rating, as that is worthless.

forgotmyname

Maybe i read this wrong but you paid off £16k by overpaying but took out £13k of additional credit on a card?

Now looking to get more credit?

Thrugelmir

forgotmyname wrote: »

Maybe i read this wrong but you paid off £16k by overpaying but took out £13k of additional credit on a card?

Now looking to get more credit?

That's how I am more or less reading the post. Any lenders concern will be the dependence on debt to fund the lifestyle.

DCFC79

What's wrong with the current car ?

CLAPTON

what are the APRs on your current debts?
presumably you have been paying as much as possible on the highest APR debt and only just above the minimum on the others?

MEM62

dunnc64 wrote: »

Hi All,

As the title says really. I am currently awaiting for my credit file to be updated after paying off over £6500 worth of debt early last month, experian advise it will be any day now, so I should have either a low Excellent rating or a mid to high Good rating. As you may have gathered from other posts - ratings are irrelevant. The raw data on you credit history is what potential lenders are interested in.

I have a loan with Natwest which is down from £20k to £4500 (within 2 years) by over paying a good chunk this year, but I have racked up some credit card debts to which are now at £13,000 - I have cleared about £2000 of these last month also. I am currently paying around £510 for the natwest loan and £440 on the credit cards - with interest payments being around £280 per month being added to the debt.
So you have paid down the loan but increased your credit card debt? As the CC debt is likely to have the higher interest rate perhaps you have not actually improved your situation. What net reduction in you debts have you achieved?

So I am paying currently over £950 per month on these, which I can afford, but it would be nice to free some up and restructure (it is a joint debt with my wife)

I have been preliminary accepted for a 5 year loan with natwest, which will lower payments to around £330 at 8.9 % (hoping I will get a better rate once my credit rating updates, but 8.9 isnt too bad) If this interest rate is lower than your current loan & cards then this could be a good move. The only danger is that, after consolidating, you will feel some financial relief and start spending / running up debt again. Unless you resist this you will continue the debt spiral.

BUT - I have been offered a fantastic deal from vauxhall for a new car, which I will need finance from them on (ive had several cars from them in the past) - but I need to try and get both in a couple of days?? Is this feasible - is there a tactic to better my chances? i.e apply for both within a couple of days, or the same day? Spending on a new car while you are trying to deal with this level of debt is, in my opinion, madness.

I will be overpaying on the new loan also. Any advice will be grateful before I apply. Thank you My advice? Take the consolidation loan but make sure you resist additional debt afterwards. Keep your current car until you are debt-free and then keep it even longer.

Kind Regards

Dunnc64

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poppasmurf_bewdley

forgotmyname wrote: »

Maybe i read this wrong but you paid off £16k by overpaying but took out £13k of additional credit on a card?

Now looking to get more credit?

The economics of the madhouse. :mad:

foxy-stoat

Take a loan, clear your credit cards and cancel them all.

Keep current car and save up for a few years while paying down the new loan.