Loan advice (re-financing) please

Ilona

No need to apologize, you are feeling stuck and can't find a way out. Would you find it easier to speak face to face with someone, maybe Citizens Advice? I think Stepchange would be a good solution for you, they have helped lots of people out of a sticky situation.

Do you have support in the home, any relatives?

Give the Statement of Affairs a try, things become a lot clearer once it is written down. Gather your paperwork together, any bills, utility, council tax, bank statements, credit card statements, loans, anything waiting to be paid. Standing orders/direct debits. Write down interest rates.

Get a big piece of paper first and copy down the figures, then you can transfer those to the SOA. Write down any incomings you have, dates you receive them. Take it one step at a time. If you start feeling stressed get up and make a cup of tea, take a break, and go back to it. Take deep breaths, give it a try.

ilona

Shamed&Scared

Apologies for not replying to sooner. I contacted StepChange in order to gain advice on whether a DMP would be beneficial or whether it’s worth contacting the creditors directly and explaining the situation and seeing if they offer a payment plan.

My husband asked me not to as it will affect our credit rating and concerned about future mortgage etc?? He approached his father for help and who very kindly said he would help us. However this was July and not to sound awful but we are still waiting. He has mentioned it again and been told I’m going to help you.


I’m still thinking I’ll put myself on a DMP and hubby can do what he pleases and sort his own.


Is credit rating/score a big thing? I checked mine on Experian and says excellent ???

[Deleted User]

Credit scores and ratings are not a thing at all. They're made up and not used by lenders

Focus only on the data on your credit files.

Willing2Learn

Hi, your credit score is not important. Lenders don't see it and they don't use it. Lenders score you against their criteria and independent policies using the data held in your credit file added to the data you submit in an application.

What is your current debt level?
Who are your creditors?

Edit: If I was you, I would post your full Statement of Affairs (SOA) so that you can get advice and support targeted directly toward your needs.

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

macman

Why do you imagine that one big payment each month is any more 'manageable' than 4 smaller ones? What matters is the total cost of the loan over the full term. Nothing else. Not the monthly payment.

enthusiasticsaver

It is difficult to give advice without an soa but if stepchange recommend a DMP that normally means you cannot make minimums or the interest rates on your debts are high and you don't have the option of moving to 0%. If this is the case you won't get a consolidation loan at a decent rate anyway as you will fail affordability rules.

A DMP will affect your husband if you have any joint accounts or a joint mortgage. It will take 6 years for any defaults to fall off your record. Many people have found a DMP useful though in that they can afford to live without robbing Peter to pay Paul.