Loan/Mortgage/CC Help!

HelpMeHenry

Sorry to post a new thread, I couldn't figure out if that was the right thing to do or not! I'm after advice about my current situation - any and all advice welcome. I know my debt situation is not good...

I have a mortgage through Chorley BS with 100K left on it, and around 25K equity in my house.

I have a personal loan with Tesco with about 16K outstanding on it.

I have both a Barclaycard and MBNA card each with around 7.5K on them.

My credit rating is poor because of the amount of revolving unsecured debt I have. The most imminent of which is my credit cards. I am now paying interest on both and the minimum payments are high, however I can't get accepted for a loan or a credit card shuffle because my credit rating is poor. I looked into a loan against my house from my mortgage company but they said the LTV would be too high and the most they could do is 1K. I looked into a secured loan through a broker which looked like it was going to work out, however their valuer low balled the valuation which forced me into a really high interest secured loan option which I did not want to take.

I am getting married in September (I know, great timing isn't it, but the credit card debt was unexpected). My partner has good credit however she already has 2 personal loans and 2 credit cards (although managed well) and doesn't have the capacity to get any more to help me out (not that she should anyway).

I am due to get inheritance money, around 7K but not for a number of months, perhaps longer.

Are there any companies that anyone knows of who are likely to give me the 15K loan to clear the credit cards and bring my credit rating up a bit whilst I am waiting for my inheritance to come through? Or is it worth visiting a mortgage broker to look at moving my mortgage to somewhere that could include the debt as part of the mortgage? And would this then go on to impact me when I decide to sell up?

Any ideas would be gratefully received, I'm struggling to see the wood for the trees right now. Thanks.

-taff

it's worth going to the debt free wannabe forum for advice because what you're looking for is the magic bullet consolidation loan and they rarely work.

Pixie5740

There aren't any lenders out there who are going to give you a consolidation loan at a half decent rate. You've hit your credit wall.

Are you currently able to meet your minimum payments on all your debts?

[Deleted User]

If you've already tried mainstream providers, there won't be any options.

A remortgage may be a possibility, but you're turning unsecured debt into secured.

In the meantime, you need to cut costs and pay as much as you can to the highest rate debt. Visit the DFW boards for inspiration.

HelpMeHenry

Hi. Yes I can meet the minimum payments, I've never missed one or gone over my limit but I can't overpay.

Pixie5740

Is there absolutely nothing you can cut back on to try and pay off your debts quicker? Perhaps find a way to boost your income? Fill in a statement of affairs and head over to the Debt Free Wannabe board.

The other option is to carry on as you are and then if/when you receive your inheritance (don't underestimate how long that can take) put it towards your most expensive debt(s).

If your wife-to-be is also juggling debt it might be an idea for her to try and nip it in the bud now before she winds up in the same situation as you.

DCFC79

HelpMeHenry wrote: »

Hi. Yes I can meet the minimum payments, I've never missed one or gone over my limit but I can't overpay.

Don't want to state the obvious nor do I know if you haven't considered it but you need to cut back on your spending or get a second job or look at other ways to make some money eg sell stuff.

I also second the idea your wife nips it in the bud before it gets even worse.

Your credit rating isn't and I repeat isn't seen by anyone except you, lenders go by the history.

foxy-stoat

Another loan to clear credit cards wont help your credit rating. You need to earn more and spend less, can you sell stuff, down value your car to reduce the highest interest balances? How much have you or are you planning on spending on your wedding - you cant afford it at the moment I dont think.

As you have only parked your debt by using the 0% interest cards and not paid them down, the interest will now be pushing you into an-affordable situation so you need to concentrate in paying the highest interest cards off first, you wont find a cheap consolidation loan I am afraid.

Good luck

Candyapple

What's your annual salary?

What was the £31k spent on? Any chance you can sell anything of value that you may have bought to clear some of the debt?

If no lender is willing to lend to you, you're going to have to clear the debt the old fashioned way - by increasing your income by way of a better paid job/pay rise or second job and if that's not possible, to organise a budget, stick to it and any money left over goes towards the debts.

The £7k inheritance should make a nice dent in the overall amount owed, however you didn't spend the £31k in a short space of time so don't expect miracles and to clear your debt with an unrealistic timeframe.

Good luck.