How the flip are you meant to get a debt consolidation loan if your declined because your debt high!

Sncjw

How much do you earn per year?

With your debt when you get a consolidation loan your doubling your debt. The lender will be assessing you on affordability on £63,000.

If your struggling to pay on £31.500 then your going to on £63,000. They don!!!8217;t know your going to use it pay off debts. Many people get the loan and then they think oh I have extra money to spend and sink more into debt.

Get your self on debt free wannabe page and post a soa so we can see where to cut back to help pay towards the loan

foxy-stoat

lawero1 wrote: »

No, I worked out 4 refinance options this morning. Although I am keen to pay back the debt as soon as possible and the higher the loan, usually the lower the rate. I would prefer to keep the loans and credit cards on good rates separate. Just the high APRs I want to move.

It is OK tho. I think I have just figured out a solution through our business manager.

Phew, that was lucky then....as long as your "business manager" isnt running a lottery syndicate.

Seriously, you cannot borrow your way out of debt, you need to pay your way out.

Just concentrate on the highest interest debt and only play the minimums of the low interest stuff.

Sell as some stuff as you can, down value your car and buy a cheaper one, do the PPI reclaim thing and hope nothing un-budgeted happens.

Herzlos

I understand the idea of do it it whilst able but you also need to be aware of when you pay it off and how long before you start regretting it.

I did similar and have similar levels of debt which I can manage. I didn't take it seriously enough when single, then married. Now I'm paying a bit more than he base line comfortably due to having kids, so whilst not struggling; I wish I'd thrown a lot more money at it 5 years ago.

My bank did consolidation loans that requires you pay off the debt in front of them and ideally closed the accounts. Have you spoken to your bank?

Candyapple

lawero1 wrote: »

£48,000 credit limit.
Some on 6.9% for life.
Some on 0% until 2020.
Some on 18%
Some on 25%
Two loans (5% and 10%)

If you have £48k credit limit and you owe £31k, can you not balance transfer the 18% and 25% debt onto the cards which have £17k spare?

For proper help you would need to list it like below eg:

Santander £10k balance / £15k limit - 0% until Apr 2020

Reason being, that way we can tell you which card companies are more lenient with their deals and what options would work best for you.

The easiest way out of paying high interest debts is to increase your income. Whether that be finding a better paying job, or working overtime at your current job or working a second job alongside your main one - the faster you can increase your income the quicker you can pay your debts.

The second part is snowballing your debts so that you are paying the highest interest ones first.

Third and finally, you have to suck up paying the high interest - think of it as the price you pay for having travelled. Until you clear a decent portion of your debt down, most lenders will not touch you. Once say you've cleared 25% of your debt, then you should look to see if you have any 0% offers with your credit cards or look to see if you can apply for one to shift across the higher interest debts into 0% debts.

[Deleted User]

Since this is not possible. I have to suck it up for 2 years until two main loans are paid in full, freeing up £780 a month, which can be diverted to the high interest credit cards.



Absolutely the way to go and a much better solution than what you are proposing.

davidwood681

To get help first you must admit you have a problem.

No matter how you see yourself and how good with money you think you are the reality is nobody in the right mind would get involved with you financially

MEM62

lawero1 wrote: »

My credit score is 701 (poor), ONLY due to affordability.

ONLY? Affordability is the express route to the slippery slope and if financial institutions are concerned about your affordability so should you be.

lawero1 wrote: »

Thank you. But it's OK. I'm on top of my finances.

£31K of debt at 25% suggests otherwise.

lawero1 wrote: »

Surely this is what credit scores are for? To assess a persons credit worthiness and past history.

Actually no, credit scores are randomly generated numbers that serve two purposes, firstly to persuade people to sign up for the CRA's subscription services in order to 'improve' your randomly generated number and secondly, to amuse those that collect numbers.

Lending decisions are made on the basis of your credit history with each lender having their own criterion. In your case it appears that lenders have concerns over your current level of borrowing in relation to your income.

It is a positive that you enjoyed the money and have no regrets having borrowed from your future self. However, now the tally man has come to call and you need a plan to deal with it - particularly as it will impact future plans you may have for such things as house purchases and starting a family.

The DFW board is great for advice in this respect. Post an SOA up there and you will receive some really good advice on taking control of and dealing with your debt.

Clive_Woody

Out of curiosity, where did you go travelling?

After finishing my degree and before I started my PhD I went travelling and had an amazing time. I ran up decent sized debt, but no regrets at all, it was a brilliant experience. Debt were all paid off and I have many happy memories and lots of drinking stories to bore my mates with.

I do quite a bit of international travel for my job and having done a fair bit of travelling before, few things phase me. I see my student travels as a sort of work experience.

You've probably heard it already, but focus on clearing the debts with the highest APR first, throw every spare penny at them and then work through the other debts in order of highest interest rates. Over-payments, no matter how small, all count and can make a big difference. I've always made over-payments on my mortgage and this is why it'll be gone in a couple of year's time, 6 years early and paid off before I am 45.

Clive_Woody

MEM62 wrote: »

Actually no, credit scores are randomly generated numbers.

No they are not.

They are values generated using various algorithms and take into account many factors from a person's credit history. We do not know what calculations are used to reach these mystical values, but they are not random (they may not be logical in some case I concede).

To make things more "exciting" different institutions calculate your credit-worthiness differently which makes it a bit of a lottery but the credit score from the various agencies serves as an indicator of whether you might be eligible for a loan :money:

System

lawero1 wrote: »

I appreciate you trying to help.

But this "mess!" I am in was planned.

No it wasn't because if it was you'd not now be posting on here because you have been declined for debt consolidation. You got it in your head you could just continue to balance transfer and consolidate ad infinitum and the wheels have come off that plan and now you realise just how much you're going to end up repaying.

Imagine you were queuing for the most amazing thing you always dreamed off. Maybe it is a concert, a club, a plane to somewhere you have always dreamed of going. In front of you is an endless queue of people. It!!!8217;s £10 entry. You may get in, you may not. Then someone says to you, I will let you skip the queue but instead of paying £10, you have to pay £15.

Except it wouldn't be £15 would it at 25% APR making minimum payments? And you've finally figured out just how much 25% APR on £31,500 is going to be. It is going to be around £7500 this year and several grand per year for the next four or five.