Poor Credit Score - Need a Loan- Help

Arleen

Generally the short answer is that you will not be getting a loan anywhere in near future. And beside cost cutting (and there is a lot to cut, why the heck are you spending 55 quid on a phone?!) you could look for additional part time job to boost the income so you will pay off the debt quicker, resulting in lower interest paid as time goes.

0Credit

Arleen wrote: »

Generally the short answer is that you will not be getting a loan anywhere in near future. And beside cost cutting (and there is a lot to cut, why the heck are you spending 55 quid on a phone?!) you could look for additional part time job to boost the income so you will pay off the debt quicker, resulting in lower interest paid as time goes.

The £55 phone is changing in September once the contract ends and the company I work for will take this over leaving me with £0 to pay.

Pixie5740

You aren't going to be able to borrow your way out of this. As you've already discovered you're just not an attractive prospect to lenders.

First, you need to get a handle on your income and expenditure. Complete a statement of affairs as a starter for 10 as there are lots of things you've missed out of your outgoings above.

http://www.stoozing.com/calculator/soa.php

* £220 diesel but no other car related expenses such as MOT, insurance, VED, maintenance.
* £100 on clothes is too much for someone in your financial circumstances.
* As is another £100 each for fun and hobbies.
* £55 on a mobile is extortionate.
* Why are you giving £100 a month to your mum and nice, you cannot afford this?

Once you've put together an honest statement of affairs you can head over to the Debt Free Wannabe board for support and advice.

foxy-stoat

0Credit wrote: »

Thanks again.

Ok so my only choice in the world right now is to

1) Stop spending so much on unnecessary purchases

2) Use that money to pay off debt - Starting with the higher interest rates.

?

So for me looking for loans to cover this in that way is a 0% chance of happening? So I just have to stomach pumping my earnings into this bad debt? Is there any way I cleared say half of it then try for loans again or am i just completely !!!!!!ed?

You COULD try and apply for a loan to cover some of the debt once your half way through but that will not solve your problems with outgoings/incomings. You need to pay down as much as possible in 1-2 years though and do not apply for any more credit as the computer will say no.....if it says yes then the interest rates will be 50%.

I would seriously talk to a debt charity as one thing that is obvious is that you cannot sofa hope for the next 5 years - so at some point you will need to get into a rented flat or house share. I was in your position a long time ago, although much higher debt - so I spoke to a debt charity, they advised me to stop paying my debts, find a rented flat (as I was lodging with a friend for peanuts) do a monthly expenditure at realistic costs and went down the IVA road. Worked for me, not sure about you though as you have family debt and your not in deep enough to warrant IVA on your life file.

If you use an excel spreadsheet to work out where your money needs to go and balances/interest rates on the debts, you maybe able to see a light at the end of your tunnel. To repay your debts in full will take you probably 10 years doing it the right way, if nothing unexpected happens - going BR would take you 3 years + 5 or 6 to get your credit profile back to normalish - IVA 5 years + maybe 2 or 3 years and you will be mortgagable.

[Deleted User]

Kbk23 wrote: »

Credit unions do not look at credit scores. They process credit applications manually based on budgeting. So I would pop into local credit union and take a 3 month statement. Also, if I was you I would remove majority of you credit facilities in order to prevent slipping in again. Keep 1 credit card that has lowest interest for emergency uses. Bare in mind the maximum I've seen a credit union give out is £7500 so not sure how much they can offer.

A lot of credit unions actually use the reference agencies now as the losses were too high from people who claimed they had little or no bad debt history when the opposite was true.

Certainly for my credit union they do anyway.

ViolaLass

Most of your debts are on 0%, why move them to pay interest?

MEM62

0Credit wrote: »

So I just have to stomach pumping my earnings into this bad debt?

You are going to have to do that anyway. Whilst shifting debt to a lower interest rate is generally preferable, you are not getting rid of the debt - you are just moving it.

0Credit

Thanks for all the replies and just to answer a few of them quickly

£55 phone - end of contract in 2 months goes to £0 per month as company will pay for new one.

Car: Diesel is all i pay for. It is a perk with the company I am with of which they cover everything but diesel.

£100 for family - heart over head decision but this is not something I want to cut back on or stop. They need it more than me so I will cut from other areas.

As mentioned I only wanted a £5k loan to pay off the high interest debt.

Pixie5740

You don't have £5k on high interest debt though. You have defaulted on a number of accounts and the interest on those accounts is now frozen so really you only have about £2k of debt which you're paying interest on. Due to your history of borrowing money and not being able to pay it back in accordance with the T&C you'll struggle to find any lender willing to give you a loan, never mind at a half decent rate.

dcouponzzzz

Go to your company and ask what tax contributions you need to make to use a company vehicle. I'm pretty sure there's no such thing as free in the eyes of the tax man, and if the company are subsidizing directly from your salary you might be able to get a better personal deal.

Also, even though you have 2 months left on your phone contract it's still worth calling your provider and asking for it to be lowered. You could save £40+ over the next 2 months