Loan chances help

sillysladey

Hello, what do people think my chances are of obtaining a 10k loan??
As a background, I have a few defaulted phone contracts which all the balances are settled.
I have a loan account which defaulted and I'm currently paying £700pcm month to clear, however this default will fall off my file in October (35days time), I also have a credit card which is defaulted from 2011, I'm currently paying £20 per month toward this debt, but it won't be cleared from my file until May 2017. I'm looking for the finance to clear to old cc balance, clear what's left on the loan £5000 and buy a car £3000 left. if I hold off until the loan account has dropped off my file, do you think lenders would accept me? I have had 1 missed credit card payment in the past year (didn't clear the bank on time) and my last default was 15 months ago for a phone bill which I have since settled. Any thoughts are most welcome, thank you
P.s I earn around £2.5k per month and live with parents so have quite a healthy cash flow once this loan is sorted.

DCFC79

sillysladey wrote: »

Hello, what do people think my chances are of obtaining a 10k loan??
As a background, I have a few defaulted phone contracts which all the balances are settled.
I have a loan account which defaulted and I'm currently paying £700pcm month to clear, however this default will fall off my file in October (35days time), I also have a credit card which is defaulted from 2011, I'm currently paying £20 per month toward this debt, but it won't be cleared from my file until May 2017. I'm looking for the finance to clear to old cc balance, clear what's left on the loan £5000 and buy a car £3000 left. if I hold off until the loan account has dropped off my file, do you think lenders would accept me? I have had 1 missed credit card payment in the past year (didn't clear the bank on time) and my last default was 15 months ago for a phone bill which I have since settled. Any thoughts are most welcome, thank you
P.s I earn around £2.5k per month and live with parents so have quite a healthy cash flow once this loan is sorted.

You say a £10k loan so 5k to pay the loan off and 3k for a car, leaves 2k so whats that for ?

Why are you only paying £20 a month towards the credit card debt, surely you can afford to pay more than that ?

No 1 will be able to tell you of your chances. Id say 0 chance with defaults

Use direct debits for the credit card bills well any bill, easy to setup and it means no more "didn't clear the bank on time".

You could clear the debts and save up the £3k for a car in no time.

Apologies if that's too harsh but its what I would do if I was in your situation.

dealer_wins

I would say you have zero chance of being accepted with all those defaults. Post on the "debt free wannabe" board, they will help you clear your debts in the quickest and cheapest way possible.

Dobbibill

I agree with PPs.

Don't try to borrow your way out of debt, it doesn't work.

You have a good income, also living at your parents should make your overheads limited.

Head to the DFW board and post a SOA.

Find out where your money is going, then cut back, pay debts off and save for a car.

MEM62

Others have given good advice so I'll throw something a little left-field at you.
Not the question you asked I appreciate but you may want to consider how, with your income and living at home, you are in this situation. It could be argued that you should not have any debt at all.

I accept that there may be a back-story here that you do not want to share but it is important that you understand why you are in this financial position as it will help you avoid similar in future. Could you imaging having to sort out this level of debt and service a mortgage or rent? After all, it would be a shame for you to sort all this now only to end up in the same position again a couple of years down the line.

dresdendave

MEM62 wrote: »

Others have given good advice so I'll throw something a little left-field at you.
Not the question you asked I appreciate but you may want to consider how, with your income and living at home, you are in this situation. It could be argued that you should not have any debt at all.

I accept that there may be a back-story here that you do not want to share but it is important that you understand why you are in this financial position as it will help you avoid similar in future. Could you imaging having to sort out this level of debt and service a mortgage or rent? After all, it would be a shame for you to sort all this now only to end up in the same position again a couple of years down the line.

This was my thought when I read about the OP's situation. £30k salary and living with parents, they should be on the forum asking "I've built up a large savings pot and want advice on how best to invest it".

sillysladey

The debt came about years ago when I was dumb and immature, I've made minimum payments ever since but they have threatened me with court action, so to avoid a ccj I'm paying around £1,000 per month to settle the debt, to be able to obtain a mortgage in the future. Appreciate all comments and they are very valid, but in at a point in time where I need to be out on the property ladder within 3-6 months, 'refinancing' is the easiest solution although I do appreciate not the best idea!!! thank you for your comments I will take them on board. As a heads up it was a £8.5k loan of which I had to repay a total of £24k..... Was well and truly screwed over!

Lemonsqueezer78

What is driving the need for you to be out on the property ladder within 3-6 months?

And more to the point, to meet those time frames, you would have to have a deposit saved wouldn't you? Have you actually got savings already???

I get the impression there is a little bit more to this..but for now all I'll say is this; if you are dead set on being on the property ladder as soon as you can - be very careful about the next set of financial decisions you make. If you take a 10k loan out just a few months before you rock up to a bank and try and get a mortgage, and you come some "saved" cash for a deposit, it will - in effect - simply look as though you have taken out a loan for a deposit. You'll be surprised what a lender is able to piece together from your credit file and it may not be the rosie picture you need it be be to achieve your ambitions...

robber2

Sorry but the only place you will find a loan for 10k at the moment is cloud cockoo land. You need to sit bck and take a long hard look at how you will be viewed by lenders in the sort term. You are doing the right thing by cleaering yoyur debts but your time scales for buying a property are way over optimistic.

good luck

rob

foxy-stoat

Forget about a loan, you wont get one, but if you do manage to get offered terms they will be very high rates so you wont take it out so get that thought out of your mind.

If you want to go to a lender for a mortgage you will want all your defaults settled and cleared, wait 6 years from the latest date, you will also need £1500 cash for legals, £500 cash for surveys and at least 10% cash saved up for the deposit. If you intend on doing any work other than a few tins of paint you will want a few thousand in the bank and if you have minimal furniture maybe a few thousand to furnish the property - ebay is a good option for cheap furniture.

How much do you pay rent and how much is the likely mortgage payment going to be? Pay the difference into the highest interest debt first and clear them all off as soon as possible.

Good lucks