Denied personal loans

System

You will not be offered more credit other than payday loans and sub-prime like Amigo. The reason is because your current level of debt and commitments are very high compared to your income and the company you want to borrow off have no guarantee you're going to pay off all your debts with what they lend you. Would you lend a stranger who said that they were living hand to mouth and were worried that they couldn't even meet their food bills £5000? No and neither will finance companies.

You have two choices:

1) Increase your income by finding a second job, selling some of the stuff you have etc.

2) Reduce your outgoings which is why you need to post a SoA on the Debt Free Wannabe board so they can find out what you can cut and what you can change so you're paying less for stuff.

There is no magic wand that any of us can wave which is going to sort this out for you and not leave you living hand to mouth. It no doubt took you a while to get into this situation and it'll take a lot longer to get out of it.

Kidder81

It sounds as though your whole finances could do with an overhaul.

I'd post an SOA as suggested and look at ways of cutting back and/or increasing income to get rid of the Amigo loan asap.

TBagpuss

Sadly yo're not going to get a loan as things stand, and applying will simply make matters worse, as having too many searches on your credit record is not generally a good thing.

Since you can't borrow more, at this point your best bet is probably to try to look at ways to boost your incomes, and reduce your outgoings.

In terms of income, think about whether either of you can get any extra hours, take on a second job, and then use anything you earn to reduce the debt.

Consider whether you could make money though selling anything (ebay / car boots) You might find that friends or family have stuff they would be willing to give you sell, even if they are not in a position to give or lend cash.

To reduce your outgoings, do as others have suggested and post a statement of affairs on the debt free board, to see whether there are any ways to reduce costs you haven't already thought of.

It may also be worth checking the 'entitled to website, to make sure that you are claiming any benefits or tax credit you are entitled to.

fozmcfc

As I can see it, unless you can increase your income, you are just to going to have to accept things are what they are.

I praise you for your attitude towards your guarantor, many would just stop paying and/or enter a DMP.:T

In life you need a roof over your head and food and drink in the belly, everything else is not essential. Many of us having been in a similar situation and just got our heads down and paid off our debt. In my case, 2 years, for those two years, I basically lived without any luxuries and just got my head down and paid it off.

Have a look at the debt free wanabee section of the website. You could post up a SOA (statement of affairs). Also there are some challenges, where people try to save and cut down on items as well. Plus hints and tips, all from people who have been or are in your situation.

Every month, you pay that loan, is a month closer to your debt free life.

Good luck.

PeacefulWaters

A long shot. Would your guarantor be able to get a low rate loan to repay Amigo and trust you to make the payments on that?

A big ask, but their liability remains identical. The rate almost certainly massively lower.

enthusiasticsaver

You need to stop applying for loans. If Amigo with a guarantor loan was your only option last year and your income/expenditure has not changed then a further loan is not going to be agreed and would not help your situation unless the interest rate was a lot lower than your existing loan. As others have suggested if your guarantor is in a better financial position and is willing to take out a lower interest loan in their name to repay the Amigo loan this may work but that may be asking too much.

I think the best thing you can do is look at your outgoings and see if there is anyway to cut back. Keep a spending diary, post an soa on the DFW board and look for ways to increase income, sell or ebay stuff, second job, mystery shopping or surveys.