Little Loan Advice please.

Debtfreefor2016

Hi,

So as my name suggests, I'm in debt. But 2016 WILL be the year it changes .

Need some opinions really, my debt was racked up through gambling, 3 loans and 2 CCs. I always see people posting you can only really borrow half your yearly salary.

I have a mortgage too. So why was I able to get loans of 8K, 10K & 10K and CC of 12K & 4K?? I'd say all your reputable places.

Not after any sympathy or such, just wondered how it was possible. My Salary with overtime is roughly 26K.

Thanks

Dan-Dan

Whats the question?

[Deleted User]

The answer is that the lenders felt you were an acceptable risk to lend their money to, based on their differing criteria.

poppasmurf_bewdley

Debtfreefor2016 wrote: »

Hi,

So as my name suggests, I'm in debt. But 2016 WILL be the year it changes .

Need some opinions really, my debt was racked up through gambling, 3 loans and 2 CCs. I always see people posting you can only really borrow half your yearly salary.

I have a mortgage too. So why was I able to get loans of 8K, 10K & 10K and CC of 12K & 4K?? I'd say all your reputable places.

Not after any sympathy or such, just wondered how it was possible. My Salary with overtime is roughly 26K.

Thanks

Just as a matter of interest, how do you propose to repay your debts of £44k during 2016 on a salary of £26K, whilst also paying your mortgage?

Pixie5740

The 50% thing is just a rule of thumb it's not set in stone. Each lender has their own criteria when deciding how much to lend to whom and at what rate.

How long ago did you apply for these loans? Did you apply for them in quick succession (i.e. applying for another loan before the previous one(s) showed on your credit file keeping in mind lenders don't necessarily use all 3 credit reference agencies)? Did you fib when applying?

The upshot is that you were able to obtain these loans because you applied for them. That's the bottom line.

Debtfreefor2016

I was just wondering why I managed to obtain so much, when I keep seeing people posting struggling to get even 50% of their salary.

I didn't "fib" on any of my applications, I bank with HSBC of which I have a loan and CC and my mortgage is with Halifax of which I also have a loan. Barclays CC & a natwest loan. All gained in the last year so not like 1 yesterday 1 today sort of thing.

dealer_wins

The lenders thought you were an acceptable risk and will repay your loans as you agreed.

Being a home-owner also means that failure to pay can mean them putting a charging order on your home, giving them extra security.

If you are struggling (or even if you are not struggling) go to the "debt free wannabe" board, post an SOA and you will get lots of great advice to help you become debt free in the best and quickest way.

enthusiasticsaver

You obviously met their loan criteria and were considered an acceptable risk as you are working and have a property and a mortgage which is presumably up to date. Are you getting help for your gambling addiction?


The DFW board is good for those struggling to get out of debt and you have a bit of a slog ahead of you with that many loans and credit cards.

daytona0

Debtfreefor2016 wrote: »

I was just wondering why I managed to obtain so much, when I keep seeing people posting struggling to get even 50% of their salary.

The honest answer to the question "why did I manage to obtain so much" is....

'because you're a gambler'


What if I told you that I would loan you 44k so that you could put it all on an even money dog? Would you be tempted? One dog race, lasting no more than 2 minutes, could settle your past debts...

I'm not trying to be nasty or anything, but that is the bottom line of gambling addiction. You carry on until there is nothing left. At that point you can either try and "win it back" or face up to your problem and go somewhere like gamblers anonymous... Gambling problems first, sorting finances second (though don't default)!

As a rough indication, not counting interest, but with 44k of debt you are looking at:

40 years = £92 a month
30 years = £122 a month
20 years = £183 a month
10 years = £366 a month
5 years = £733 a month

Looking at a tax calculator you should be getting paid £1730.60 NET per month. If you are living near London then you're looking at 10-20 years I'd say (especially with a mortgage). If you are living somewhere a bit more northern then you can probably clear it in 5-10 years depending on commitment. That assumes you are single... A partner (no kids) wouldn't likely affect anything if working, and 1+ kids would add on a lot of years.

So all in all, you're about to start the grind (and you'll need to nip the gambling in the bud otherwise one random night will cost you a great deal). Good luck

Debtfreefor2016

Thanks for the replies. I'm dealing with the gambling. Mortgage and my share of bills / food is approx £600 a month. Living with partner, no kids.

So I have £800-£1000 a month (depending on overtime) left monthly for debt repayments. I meet the minimum on all and overpay CCs most months.

robatwork

Debtfreefor2016 wrote: »

I was just wondering why I managed to obtain so much, when I keep seeing people posting struggling to get even 50% of their salary.

I didn't "fib" on any of my applications,

You probably did "fib".

In the sections regarding outgoings, you probably didn't put your gambling outgoings.