Loan advice (re-financing) please

Shamed&Scared

Could I please ask some advice

I’ve just cleared my Next and Very catalogue accounts and I am going to close them asap.

I have 3 credit cards open, not all with debt on them, however, they have really high balance limits on them. i.e one has 10k limit – its ludicrous.

I’m finding I’m clearing my debt better with a consolidation loan (I know this isn’t the advisable route on the boards but its working for me) and I want to refinance the loan I have to add my last remaining balance from my credit card on. I have found a loan which if I could get it would be lower interest rate and over lower term years too (current loan is 6 years remaining, one I have potentially found I could get down to 4 – maybe ever 3.5)

What I want to ask if, would I be better of lowering all my credit limits on my cards prior to applying for the loan i.e, will this help with credit checks OR is it best I leave them as then its “available credit” to the credit checks. I would rather close the cards altogether and that is the plan should I consolidate again, however, if I can’t get the loan, I need the cards for 0% balance transfer.

I’m so sorry if it doesn’t make any sense when I’ve tried to explain it.

Please be kind, I know loans are frowned upon and should stick to 0% balances etc but I’ve tried that and got myself way confused over many years and with one loan payment its working for me, direct debit, out my account and there is an end date.

enthusiasticsaver

As you are consolidating I would close down at least 2 of those credit cards obviously if they are clear as you may be tempted to spend on them again. That is the downfall of consolidation. That may also make you look better on file as you wont have access to as much credit.

Pixie5740

I wouldn't change anything on your credit history before applying for more credit. Lowering your credit limits might not have the desired effect to make you look more attractive to other lenders.

Shamed&Scared

Thank you. You understood my jumbled message.


So it would be best to close all cards with nothing on. Wasn't sure if the credit checked worked best when you had "available credit" etc

Shamed&Scared

Oh? So best to leave all cards as they are and apply?

Mnd

Yes, I should think so.you seem to have a fairly good grasp on what you are trying to do

sourcrates

Shamed&Scared wrote: »

Please be kind, I know loans are frowned upon and should stick to 0% balances etc but I’ve tried that and got myself way confused over many years and with one loan payment its working for me, direct debit, out my account and there is an end date.

Hi,


Its not working for you though is it, by your own admission you have been in debt many years, and nothing has changed, you have consolidated, then taken on extra credit again, now you want to repeat the process, its madness, stop and think what you are doing here.



It is a simple fact, you cannot borrow your way out of debt, i would sincerely urge you to stop and think about what you are doing, its debt management advice you need, not more borrowing, I`m telling you this as someone who has been in your shoes, honestly the cycle you are in will just continue until you cannot borrow any further funds.


Only at that point will you realise the folly of what you have done, but by then your debt will of increased 5 fold.


Please, get in touch with one of the free debt charities, take there advice.

Shamed&Scared

I'm not trying to borrow more, I'm trying to get everything into one monthly payment so its manageable for me and my mental health. yes, I have been in debt a long time, yes I was foolish, yes I did the balance transfers etc over 4 different cards and whilst this is the best way long term to pay back and not over pay, it didn't do anything for my wellbeing to the point I ended up on the sick stressing about payments each month and ill in case I missed a payment.


Equally, yes I did spend more on a card which I now want to shift - thankfully something happened which scared me and immediately got rid of all cards. I spoke to my parents (broke down in fact) and gave them the cards - only not cutting them up in case of balance transfer.


I now have no access to any credit cards, worked load of overtime to pay catalogues off which I have just emailed to be closed.


This is why I was reluctant to post on here - I now feel judged

Ilona

Shamed&Scared wrote: »

I'm not trying to borrow more, I'm trying to get everything into one monthly payment so its manageable for me and my mental health.


This is why I was reluctant to post on here - I now feel judged

Hi. No one is judging you, it's the same advice for anyone who wants to shift debt, consolidation rarely works. You tried it in January, now you want to do it again.

The way to tackle debt is to complete a statement of affairs, listing all your incomings and outgoings, and people can make suggestions on how you might cut down on your spending to release more cash to throw at the debt. Have you done a S O A? Can you do one?

You could contact Stepchange for help, you would have to do a SOA for them.

ilona

Shamed&Scared

I apologise.
I'm a sensitive and snappy at the minute. I'm exhausted constantly thinking about money and have been for months, my mood is either sky-high and screaming I can do this or I plummet and hit rock bottom where I'm drowning and see no end to things.


I do apologise

sourcrates

Shamed&Scared wrote: »

I apologise.
I'm a sensitive and snappy at the minute. I'm exhausted constantly thinking about money and have been for months, my mood is either sky-high and screaming I can do this or I plummet and hit rock bottom where I'm drowning and see no end to things.


I do apologise

Its OK.


Honestly, i am in no position to judge anyone, and that was not my intention here, there are solutions to debt problems, that work very well, and without the need to borrow again, or be continuously stressed about the situation.


People can be reluctant to take these steps, as you may be worried about your credit report, or not been able to obtain credit in the future, but if its causing you this much anxiety, then you really need to look at other permanent solutions to your woes.


We are a mostly, friendly lot on here, all of us have had some kind of debt problems, so you see we recognize the signs that you may of missed, why not post a statement of affairs, available here :


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


Fill it in as best you can (format for MSE when asked) then we can get a grasp of your situation as a whole, and should be able to recommend options for you.


Its up to you if you want to take the advice , or not, but at least it gives you an insight into whats available to you.