Consolidation Advice

Kenpachi

boo_star wrote: »

That may be the case but the banks will view affordability on the basis of you not paying it off unless they have a way to guarantee the amount is paid off, such as if the debt being paid off was with them.

On that basis, even assuming they are unaware of the family debt, the total amount of debt would be 29k. They're unlikely to lend past 50% of your annual income so a consolidation loan is almost certainly out of the question. Certainly with a prime lender.

I went to a high street bank today where they stated that the affordability calculator stated that I could pass and that it was 'likely' that I would get it.

I am glad I have posted in this forum, for second opinions.

Kenpachi

!!! wrote: »

Use an eligibility checker to see what balance transfer options you may be eligible for.

You won't know the limit until you apply and accept but it's a good start and if you can get one with a decent balance transfer 0% promo then thats 2000 to worry slightly less about.

How long is left on the current loan?

4 years

[Deleted User]

And how long if you increase your payments?

How much could you increase your payments by?

Dobbibill

Hi Kenpachi - welcome to the forum.

Don't look for consolidation, it rarely works and you probably won't get the 4% loan due to affordability - they will rate you according to your risk. With the other debt you have, the risk will be increased which would explain why your soft search quotes are coming in at 20% etc.

You say the loan is 18% but don't say how much the credit card or overdraft are.

You need to create a SOA, post on the DFW board and see if any of your outgoings can be cut back giving you more to overpay on the debt - once you've got your rates, look at overpaying the highest interest bearing debt first. The overdraft will probably be up there in that and can be called in at any time by the bank.

Also address the reason for the debt - will it happen again? What can you do to prevent this?
While you are waiting for suggestions on your SOA, grab a cuppa and read this thread. https://forums.moneysavingexpert.com/discussion/5567669/unsure-whether-to-consolidate-please-advise

boo_star

Kenpachi wrote: »

I went to a high street bank today where they stated that the affordability calculator stated that I could pass and that it was 'likely' that I would get it.

I am glad I have posted in this forum, for second opinions.

The affordability calculator would only check for 17k vs a 29k income which is pushing it but certainly possible.

The computer would almost certainly say no when it saw your credit file and if reviewed manually would certainly be rejected by someone in their lending department.

Kenpachi

Deleted_User wrote: »

And how long if you increase your payments?

How much could you increase your payments by?

How can I work this out ?

Thank you

Kenpachi

boo_star wrote: »

The affordability calculator would only check for 17k vs a 29k income which is pushing it but certainly possible.

The computer would almost certainly say no when it saw your credit file and if reviewed manually would certainly be rejected by someone in their lending department.

Not to negate any other advice, this is probably the most important post of them all for myself.

Unfortunately, my heart is telling me to 'attempt and apply' and my head is now telling me 'crap credit file will result in a no'.

Whilst the bank is saying that I may be eligible, the will most likely with the same chances turn around and say no.

Thank you in advance.

:beer:

Kenpachi

Dobbibill wrote: »

Hi Kenpachi - welcome to the forum.

Don't look for consolidation, it rarely works and you probably won't get the 4% loan due to affordability - they will rate you according to your risk. With the other debt you have, the risk will be increased which would explain why your soft search quotes are coming in at 20% etc.

You say the loan is 18% but don't say how much the credit card or overdraft are.

Also address the reason for the debt - will it happen again? What can you do to prevent this?
While you are waiting for suggestions on your SOA, grab a cuppa and read this thread.

The few credit cards that I have paid off are stupidly over 30/40% high interest. I am glad I have now paid them off. The outstanding credit card is approx 20% (if I remember correctly).

To prevent this from happening? Cards have been cut in half !

Thank you, will be going through your tips and advice.

Money_maker

Another question to consider is why/how have you overspent by 17K? Do you have expensive purchases that maybe you can sell and recoup some value from? Do you have an addiction (drink, gambling etc) that you think you have resolved? Are you trying to keep up with someone more solvent? Or is it simply that you are living beyond your means and just overspending each month? This has to be addressed first to ensure that you do not drift further into debt. Consolidation mostly fails and the debt increases. For most overspends, go to debtfree board, list your outgoings on a SOA and peeps will help you to reduce them, increase your repayments and learn to live more frugally until your debts are cleared. Good luck.

Dobbibill

Lots of small debts mean you can work through them one by one - as the debt gets lower your debt to income ratio will change which may in turn make you eligibile for 0% CC offers. While this is not paying the debt off, it will give you the chance to move some of the debt to 0% and chip away at the capital.

Another credit report to check free is https://www.clearscore.com/ they provide your Equifax report.