Advice please!

Lolly18

Hi

I currently have one default on my credit file which is due to be removed on January the 1st, at the present time I have a high interest credit card maxed out at £2900 and another lower interest card with a limit of £500 that I use regular and pay off every month. I also have a car on finance with £5000 left outstanding roughly.

I was really stupid with the high interest card and used it to pay for a holiday at the beginning of this year with my now ex boyfriend. I earn good money and all my payments on everything are made on time every month and the only thing that’s negative on my credit file is obviously the default.

My plan is to get a loan in the new year pay off the high interest credit card and get rid and pay off the car finance to bring my monthly outgoings down and consolidate everything into one payment. Literally no one will think about giving me a loan with the default showing. Will my chances of getting a loan instantly improve when the default is removed? And also would I be better with a balance transfer for the credit card?
Muthank you for taking the time to read this!

Lolly

Sncjw

You do realise they will asses you on double the debt you have. How much do you earn?

DCFC79

Lolly18 wrote: »

Hi

I currently have one default on my credit file which is due to be removed on January the 1st, at the present time I have a high interest credit card maxed out at £2900 and another lower interest card with a limit of £500 that I use regular and pay off every month. I also have a car on finance with £5000 left outstanding roughly.

I was really stupid with the high interest card and used it to pay for a holiday at the beginning of this year with my now ex boyfriend. I earn good money and all my payments on everything are made on time every month and the only thing that’s negative on my credit file is obviously the default.

My plan is to get a loan in the new year pay off the high interest credit card and get rid and pay off the car finance to bring my monthly outgoings down and consolidate everything into one payment. Literally no one will think about giving me a loan with the default showing. Will my chances of getting a loan instantly improve when the default is removed? And also would I be better with a balance transfer for the credit card?
Muthank you for taking the time to read this!

Lolly

You don't need a loan. Cut back on your spending.


Consolidation will only work if your strict very strict with not building up the card debt again. You could get a loan and then start spending on the cards again.


You got any savings ?

Lolly18

I would not spend on the card again, the plan is to close it and get rid of it so there is no temptation, I have very little savings £740

To answer the first reply I earn £36000 a year flat

CakeCrusader

You could register for the MSE credit club, shift the debt of the high interest card onto something with a much lower interest rate (or a 0% card) and clear it off. You're more likely to get a balance transfer card. Just a thought.

Lolly18

@ cakecrusader yea that would sort the credit card out I would really like to pay off the finance also because the monthly payment is high on that and would really like to reduce my monthly outgoings. Thanks for your input 😊

DCFC79

Lenders might question why on £36k you cant clear the debts sooner.

I actually dont think you need a loan.

CakeCrusader

36k goes quickly when you have rent/bills/food/high interest cards to feed.



I'd register with the MSE credit club; https://clubs.moneysavingexpert.com/creditclub/login See if you can get a balance transfer card and take it from there. Some may not have a high enough limit, that's OK, transfer what you can and throw everything you can at the high interest card (you still need to make slightly more on the minimum payment on the balance transfer card though, then put it away so you're not tempted to use it once it's cleared).

[Deleted User]

£2300 per month after tax?

Where’s it all going!?

You might want to post in the DFW board with a breakdown of all your expenses etc.

Lolly18

It’s all going on nursery fees for my little girl so I can work, rent, council tax, petrol, food, general household bills, then my car finanace, credit cards. My nursery fees are not far from half my wage a month.

I do not live a lavish lifestyle, i made a mistake with the high interest card and I’m now paying for that mistake. If I could simply pay the card out of my own money I would do that. The payments I make a month hardly make a dent in the balance by the time the interest has come off. I pay the maximum I can afford to pay.

Im just asking for some advice

Thank you for the comments

Lolly

Lolly18

I obviously wouldn’t ge a rate worth taking at the minute with this settled default on my file.

Can people imagine I’d be getting good rates on either a balance transfer card or a loan when this default drops off in jan? Like I said it’s the only bad thing on my file. No late payments or anything else. Although my credit utilisation is high.

Thanks again

Lolly