Rejected for loan

Loserpippa

Hi I'm new to this, so wasn't sure where to post this. I just needed some advice please. Firstly I should tell you that I'm on a DMP with Stepchange- I have 2 credit cards . One of them has frozen my interest. The second one (£9700 with Halifax) refuse to freeze the interest as i can pay the minimum through the DMP. My issue is that I am paying £150 a month, but only £50 goes towards the main balance. They are charging me £100 a month in interest. I called them and they said that they couldn't help. I went behind Stepchanges back and applied for a loan and got rejected. I had an excellent credit score and this has now been reduced slightly. I don't know what to do. I'm never going to pay off the Halifax card at this rate and I'm feeling quite depressed and anxious about it. I don't have anyone to talk to. Please help!

DCFC79

Loserpippa wrote: »

Hi I'm new to this, so wasn't sure where to post this. I just needed some advice please. Firstly I should tell you that I'm on a DMP with Stepchange- I have 2 credit cards . One of them has frozen my interest. The second one (£9700 with Halifax) refuse to freeze the interest as i can pay the minimum through the DMP. My issue is that I am paying £150 a month, but only £50 goes towards the main balance. They are charging me £100 a month in interest. I called them and they said that they couldn't help. I went behind Stepchanges back and applied for a loan and got rejected. I had an excellent credit score and this has now been reduced slightly. I don't know what to do. I'm never going to pay off the Halifax card at this rate and I'm feeling quite depressed and anxious about it. I don't have anyone to talk to. Please help!

A few points

Welcome to MSE, its a helpful website.

Your credit score is just a number, no 1 can see it but you. Lenders, banks etc see your credit history.

I wouldn't worry about the loan. Look at other ways to either earn some extra money or reduce your spending.

Loserpippa

Thank you- I was just upset that I'm paying so much in interest when all I want to do is clear this debt

Tiddlywinks

You've run into trouble with paying your current debts - you've had to ask for assistance from your current lenders... so you're not a good prospect for any mainstream lender.

How you could think your 'excellent' credit rating is credible is beyond me... you're already having difficulties after all.

You are a high risk so any loan would be at a very high APR.

You need to find ways to up your income so that you can up your repayments - this is the best way to reduce the amount of interest you ultimately have to repay.

Edited to add: have a look at the debt free wannabe board here:

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

There is lots of help and support with managing debt there.

DCFC79

Loserpippa wrote: »

Thank you- I was just upset that I'm paying so much in interest when all I want to do is clear this debt

But your sorting it which is the main thing.

I agree with going over to the debt free wannabe board and post on there.

sourcrates

Yes pop on over, if the interest is too much on the loan, there are ways and means of dealing with these types of creditors.

Don't apply for any more loans though, you will only be rejected, and it's not the course of action that will be beneficial to you either.

sourcrates

pupgrum wrote: »

You talk as if you feel you've been unfairly treated. It's your own fault. You owe money, you deserve to pay interest.

Prize for today's most unhelpful post goes to ...........

Superscrooge

One of the conditions of a DMP is usually that you don't apply for further credit so trying to get another loan was a bad idea.

Stepchange are a good organisation for helping people in debt. So don't do anything else behind their back. Follow their advice and they will help you get out of your debt problems. It just takes time.

Anthorn

My guess is that since it's a Stepchange DMP they will already have worked out what you can afford and asked the creditor to stop or reduce the interest and what they've done is accurate. But there is no harm in asking Stepchange to do it again or even do it yourself to double-check.

https://www.nationaldebtline.org/EW/steps/step1/Pages/Step_1_02.aspx

Superscrooge

Loserpippa wrote: »

My issue is that I am paying £150 a month, but only £50 goes towards the main balance. They are charging me £100 a month in interest

As your debt balance decreases, so do the interest charges.

Keep making the monthly payments and each month the interest charges will reduce and therefore the amount paid off the balance will increase.

So whilst initially £100 goes on interest payments. Next month it might be £98, then £95 then £91 etc.

You will get out of debt if you stick to the DMP

PeacefulWaters

Loserpippa wrote: »

Hi I'm new to this, so wasn't sure where to post this. I just needed some advice please. Firstly I should tell you that I'm on a DMP with Stepchange- I have 2 credit cards . One of them has frozen my interest. The second one (£9700 with Halifax) refuse to freeze the interest as i can pay the minimum through the DMP. My issue is that I am paying £150 a month, but only £50 goes towards the main balance. They are charging me £100 a month in interest. I called them and they said that they couldn't help.

Not being funny, but that's how loans and credit cards work.

I went behind Stepchanges back and applied for a loan and got rejected. I had an excellent credit score and this has now been reduced slightly. I don't know what to do.

Stop applying for credit. You're on a DMP. Continue with the DMP.

I'm never going to pay off the Halifax card at this rate and I'm feeling quite depressed and anxious about it. I don't have anyone to talk to. Please help!

Talk to Stepchange?

You will pay off the Halifax debt eventually. It takes time. Be patient.