I need help

Joe379379

Hi everyone,

I’ve got to start off by saying that this may seem like a small issue but, to me I really need to get it resolved.

I have taken out a few small loans from sunny and PiggyBank (instalment loans) I’m now finding it very difficult to maintain the payments. I’ve been in trouble with money before. Now I’ve sorted myself out and finally started to build credit over the past few months I’ve put myself into a similar position but not as bad. I only went to these people because my credit was so poor this was the only way I could get the money I needed. I find myself now in a mess again and I really do not want to default on any of these payments as it’ll affect my credit score and I’ll have to start again and wait for the defaults to get off my credit score.

I was thinking if I could get a consolidation loan for the two of them and make it into one payment that would be more affordable and easier to manage.

Any suggestions other than a guarantor loan?

Thanks in advance.
J

[Deleted User]

No more loans. It's not going to work.

Head to the DFW boards. They'll help you cut costs and work out the best way to deal with your creditors.

fatbelly

Go over to debt-free wannabee and post a statement of affairs

forgotmyname

If these loans are the only ones you can get then consolidation will probably have a bigger APR than you have now.

Guarantor loan = ruin someone elses credit rating as well as your own?

Having a guarantor wont put extra wages into your pocket or make you spend less.

Joe379379

Thanks for the advice, will a IVA affect my credit score?

Thanks
J

Edi81

You don’t have a credit score.

Your credit history and credit file will be affected by an IVA, bankruptcy, defaults.

But is that a bad thing?

Pixie5740

Indeed, forget this nonsense about credit scores, it's your credit history that is important. Payday loans don't look good on your credit files and IVA is a form of insolvency which would be a negative factor on your credit files for many high street lenders. Building up a good credit history is only useful if you want to borrow money and by the sounds of things you should not be borrowing any money at the moment.

I agree with fatbelly, get yourself over to the Debt Free Wannabe board and take it from there. Another loan is not what you need.

DCFC79

Joe379379 wrote: »

Thanks for the advice, will a IVA affect my credit score?

Thanks
J

An IVA does ruin your file for so long, depends how much debt we are talking about.

MEM62

Joe379379 wrote: »

Thanks for the advice, will a IVA affect my credit score?

Thanks
J

Take a lesson from past experience. Borrowing got you into trouble so you should realise that you cannot borrow your way out of trouble. You have already gone to the bottom feeders of the loan market because you cannot get mainstream credit. To expect to then be able to secure a consolidation loan is unrealistic - as if you had access to mainstream finance you would have used it in the first place an not be in your current position.

In respect of your credit 'score'. You don't have one - only a credit history. Either way, in your current situation I would not make worrying about your credit standing a priority as you should not be considering any further borrowing in the foreseeable future.

If you hop over to the DFW board there are some great guys that that can give you advice and support in resolving your issue. POP us an SOA and they will be able to look at your circumstances and suggest ways forward.

Good luck and I hope you manage to get things back on an even keel.

System

I wouldn't worry about the credit score, its a fictional number generated by the CRAs that no lender uses.

However the lenders do use the contents of your credit file and unfortunately the damage has already been done by taking out loans with payday lenders. They're a big red flag to any mainstream lender.

Being crap with money the last thing you want to be doing is taking out more debt, you're most likely not to use the loan to repay the other debts and just get yourself in a deeper hole.

Now is the time to accept you're going to have to take some short term pain to dig yourself out of the mess you're in so as others have said, over to the DFW board to try to get you out of it.

fatbelly

Joe379379 wrote: »

Thanks for the advice, will a IVA affect my credit score?

Thanks
J

That's a bit of a random question, Joe

Where did the IVA idea come from? You were asking about a consolidation loan in post #1