New loan what’s the chances

Dolly123

What’s the chances...

I’ve been looking at our combined out goings of £17k and realised that we’d be better off just getting a loan to pay off everything in full and then 4 years later we will be debt free (bar the mortgage and car) the payment will be approx £375 per month whereas then outgoings are £950 per month which we have quite comfortably being paying but now I have it in my mind I could be paying £600 less it seems more attractive

We applied on Friday and have been contacted by underwriter twice the first time to find out what the extra £10k is for as my personal debt is only £7k the remaining £10k is our credit card and the rest of a loan to buy a car for my husband. He also asked if my salary is commission based which I replied yes partly.

2nd time the underwriter rang was today to ask what my basic was my salary is approx £40k but my basic is £18500. Also in this conversation I mentioned that my out goings are low as my husband pays our mortgage.

My question is do you think they will grant this loan with my basic only being £18500? My husband earns a good salary too but as he pays my car I though just have this in my name to make it a bit more fair!

[Deleted User]

You're asking for a total of around 24k, until (and if) you consolidate - which is a lot on a £19k basic. It's even more depending on what you mean by 'our credit card'.

You can't have 'our' credit card - it must be yours or his.

You'll just have to wait and see. A joint loan may have been a better approach.

Dolly123

I see what you mean, It’s his credit card and his loan, btw Where is the £24k come from?

[Deleted User]

You have 7k if debt and you're asking for another 17k.

It's a significant sum on your income.

Dolly123

Yeah that includes paying that off, but yeah I see what your saying they don’t know that! I’ll expect a decline!

DCFC79

Look at your spending and reduce your spending.

Dolly123

I know I’m cheating one of the loans will be gone in May which is £290 a month I just want to get rid of the credit cards as they never seem to ever go down!

DCFC79

Dolly123 wrote: »

I know I’m cheating one of the loans will be gone in May which is £290 a month I just want to get rid of the credit cards as they never seem to ever go down!

Are you paying the min amount ?
Have you stopped paying on them ?

Xbigman

Consolidation loans rarely work. You reduce the apr and the payments but you end up paying the new loan off over a longer time period which means you can easily pay more interest than with higher apr debt over a shorter term. Where they can work is where someone has a real lightbulb moment and makes a big effort to clear their debts.
The fact you are consolidating and adding to your debts to buy a car is a massive red flag. Cut up your cards and pay off the highest apr first. You will be debt free and you will have learned a valuable lesson. You have already said one loan ends in May. Put the money saved towards paying off your other debts as a priority and then save for a car.



Darren

Dolly123

Yeah that’s we want to do is just clear everything off, we combined earn over £100k a year and we can comfortably pay the monthly payments I just wanted it all in one place so it’s gone. My husbands credit card is an MBNA card that he’s had for about 13 years and it hasn’t got a great APR but being lazy we haven’t bothered change it and the minimum payment is like £330 a month since the change over it was £200 so that’s what made me think we could this cheaper. The issue is that my basic salary low and that’s what they go off!

Dolly123

And of course cut everything up. The new car is on order we get in on the 1st March but it’s a lease. But that’s to replace my existing car which ends in March. My husbands car is just a £3k runaround as he has a van for the weekend and he needed something for the weekends so he’s not taking the kids out in a dusty van. I’m tempted to ask them to change the loan to just cover the credit cards which will just be over £11k and will look more affordable on my salary