Denied personal loans

Derf_1520

Im after a little advice on where I can go! Since moving house last year (rented property) I seem to have got myself into a pickle. Ok...bare with me, this is quite lengthy. My husband had a few high interest credit cards (vanquis and capital one) and I had one high interest credit card (vanquis). We owed over 5000 on these and as our credit rating wasn't fantastic we were unable to get a low interest loan to consolidate and our only option was a guarantor loan through amigo (I know BIG mistake)! Anyway, we've been paying this since august last year and have made every payment with no late payments. I've been hoping this was going to increase my credit score so I could get a lower interest loan to pay this off, however this hasn't worked. I'm now finding these monthly payments are crippling us and we are practically breaking even. Not only are we paying a mass amount of money a month to them it seems the loan isn't chipping away as all I'm paying is interest! Every month I'm almost in tears of thinking how am I going to feed my family. I've tried applying for other loans but still no-one will touch me. Is there anything I'm not doing that I need to?

Caz3121

who is your guarantor? would they take a loan in their name and give you the money to pay off Amigo? - this would be similar to being Amigo guarantor where they would end up responsible but the interest rate is likely to be lower
Were the card interest rates higher than the Amigo rate?
You could post a SOA on the debt free wannabe board for great help there

Derf_1520

Thank you for the reply. I've already approached the guarantor and they've said no because their circumstances have changed slightly. The payments were about £200 a month more than what they are with amigo

Pixie5740

Consolidating with Amigo was not your only option but it was the worst possible option as now there's a guarantor tangled up in your finances. If you had to resort to Amigo because no other lender would touch you with a 10' barge pole then your chances of being able to get a loan are slim to none.

You could have entered into a Debt Management Plan or some form of insolvency to deal with your debts rather than consolidate with Amigo. In fact you could still look at a DMP or insolvency but now your guarantor will be shafted when you start to default.

Put together a Statement of Affairs and head over to the Debt Free Wannabe board for advice because you will not be able to borrow your way out of this.

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

AndyPix

Do you have more debt built on the credit cards now ?
Or are those gone ?

Derf_1520

One....I wasn't here to be judged, I was asking for advice! Two...I'm not in a position to not pay amigo, this is one of my main priorities and I am certainly not going to "shaft" my guarantor!!!! What I am stating is the fact that I am literally just breaking even and if there were any other options I could look at. No need to be so rude!!!

Personally I don't want to do DMP mainly because I don't want my guarantor to be expected to pay any remaining that I can't.

Derf_1520

No Andy, I cut these cards up once I got amigo loan

DCFC79

Your credit score/ rating isn't I repeat isn't taken into account for loans, you can only see the score, lenders see your credit history.

Look at your spending, cut back on non essentials and then throw any money saved at the amigo loan.

Oh and stop applying or looking for loans as none will be forthcoming.

Pixie5740

Derf_1520 wrote: »

One....I wasn't here to be judged, I was asking for advice! Two...I'm not in a position to not pay amigo, this is one of my main priorities and I am certainly not going to "shaft" my guarantor!!!! What I am stating is the fact that I am literally just breaking even and if there were any other options I could look at. No need to be so rude!!!

Personally I don't want to do DMP mainly because I don't want my guarantor to be expected to pay any remaining that I can't.

I did give you advice, very practical advice. It's not my fault you don't like it.

Ilona

Hi. Pixie was right. The biggest mistake was consolidating, thinking you could borrow more to pay off existing debts, it rarely works. Next mistake was thinking consolidation was the only option, it isn't. Now you know it was a big mistake, and a guarantor is involved.

You can keep on trying to patch things up, but to make any headway you need to first identify the cause. Could living beyond your means have anything to do with it. Follow the link in Pixie's comment, to the Statement of Affairs. If you fill that out and post it on the Debt Free Wannabe board, people will be able to suggest what spending you can cut down on, so you have more to pay off the debt. Record all your incomings and outgoings to give a clear picture.

You ask what you need to do, this is it. Best of luck.
Ilona

Caz3121

Derf_1520 wrote: »

The payments were about £200 a month more than what they are with amigo

I assume Amigo loan is over a longer term than the cards would have been so you will ultimately end up paying much more
How many months left to pay to Amigo?
How old is your negative credit history? (some elements have lesser impact as time goes on)