I have the answer but no one will help

Grazelgirl

Hi all,
I hope you are well, I have a bit of a problem.

I currently have 2 loans, and 2 credit cards, the total payments for these come to £600ish a month.

I want to consolidate them into one larger loan to a total of £24,000. but NO ONE will help me out.... Im struggling with the £600.00 on top of my rent and bills etc, and having looked at several calculators it shows a rough payment of £360ish which would really help me get back on my feet.

The banks I have spoken to have said no, my credit score is 914, and I have £1800 a month income. (at least)

I seem to be up against a brick wall when I speak to the banks, its so daft.....

They saw speak to use and we will help..... but no......

Basically I need one loan to cover all but no one will help me!!

What can I do?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 325
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 33
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 46
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 175
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 30.7
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 47.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 7.63
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Car..................................... 119
Motorcycle Insurance.................... 61.78
Motorcycle ............................. 151
Total monthly expenses.................. 1076.61


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsbury's Loan...............5784......247.8.....8
Barclays ......................4362......126.6.....7
Virgin.........................3153......31.02.....0
Santander......................1500......112.......0
Partner .......................2000......0.........0
Nan Debt.......................2000......0.........0
HSBC...........................3745......83........0
Total unsecured debts..........22544.....600.42....-


Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,076.61
Available for debt repayments........... 723.39
Monthly UNsecured debt repayments....... 600.42
Amount left after debt repayments....... 122.97

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,544
Net Assets.............................. -22,344

Reproduced on Moneysavingexpert with permission, using other browser.[/i]

Many thanks

Alex

anna_1977

consolidation is rarely recommended.

Post an SOA on here and people will help you try to reduce outgoings, also contact one of the FREE debt charities, Payplan, Stepchange and talk to them.

Grumpelstiltskin

The banks don't see that the loan is to pay off existing loans they see it as borrowing on top of your existing debts.

Why? Their experience that people will rack up more debt.

It isn't the answer to borrow more money.

You do need to post an honest SOA here and you will get advice on your best way forward.

enthusiasticsaver

Grazelgirl wrote: »

Hi all,
I hope you are well, I have a bit of a problem.

I currently have 2 loans, and 2 credit cards, the total payments for these come to £600ish a month.

I want to consolidate them into one larger loan to a total of £24,000. but NO ONE will help me out.... Im struggling with the £600.00 on top of my rent and bills etc, and having looked at several calculators it shows a rough payment of £360ish which would really help me get back on my feet.

The banks I have spoken to have said no, my credit score is 914, and I have £1800 a month income. (at least)

I seem to be up against a brick wall when I speak to the banks, its so daft.....

They saw speak to use and we will help..... but no......

Basically I need one loan to cover all but no one will help me!!

What can I do?

Many thanks

Alex

First of all consolidation is never recommended when clearing debt. Do you know how you got so far in debt in the first place? As Anna suggests post an soa on here and that will help show you where you are overspending.

Secondly you do not know you will only have a payment of £360 as not everyone gets the headline borrowing rate and any bank that does decide to lend to you will possibly charge you a much higher interest rate so the loan payment will be higher and you will be paying it over a much longer period so it will be more expensive.

Thirdly any application you make for a £24k loan will show your existing borrowing and there is no assumption you will clear that so lenders will assume you will be servicing the loan plus your existing credit cards and loans so you will be failing on affordability grounds.

The main reason for consolidation not working especially for those who are undisciplined with your spending is you may be tempted to clear the cards and loans etc with a new consolidation loan and then build up more debt again. It only works if you change your spending habits.

Usually the best way to clear debt is to move as much on to 0% interest as possible so if your credit cards are not on 0% deals you could try the eligibility checker on this site to see if you would qualify. That way at least you know the repayments are reducing the debt and not paying interest. I would tackle those first plus any overdraft you have. What interest rates are you paying on the loans?

The most important thing is to stop spending on credit cards. Do a budget. Make a plan to make monthly repayments and tackle the debts one by one starting with the most expensive. There is no quick fix and borrowing to repay debt never ever works out.

System

Sorry to be blunt but you don't have the answer. The answer is paying off your debt.

Not taking out another loan and simply renaming the debt. That is a very worrying mindset to have.

Grazelgirl

beany_bot wrote: »

Sorry to be blunt but you don't have the answer. The answer is paying off your debt.

Not taking out another loan and simply renaming the debt. That is a very worrying mindset to have.

Thank you very much for your advise :rotfl:

Grumpelstiltskin

Grazelgirl wrote: »

Thank you very much for your advise :rotfl:

OK So you don't want to hear the truth.

Just carry on and ignore the advice you are given.

Grazelgirl

enthusiasticsaver wrote: »

First of all consolidation is never recommended when clearing debt. Do you know how you got so far in debt in the first place? As Anna suggests post an soa on here and that will help show you where you are overspending.

Secondly you do not know you will only have a payment of £360 as not everyone gets the headline borrowing rate and any bank that does decide to lend to you will possibly charge you a much higher interest rate so the loan payment will be higher and you will be paying it over a much longer period so it will be more expensive.

Thirdly any application you make for a £24k loan will show your existing borrowing and there is no assumption you will clear that so lenders will assume you will be servicing the loan plus your existing credit cards and loans so you will be failing on affordability grounds.

The main reason for consolidation not working especially for those who are undisciplined with your spending is you may be tempted to clear the cards and loans etc with a new consolidation loan and then build up more debt again. It only works if you change your spending habits.

Usually the best way to clear debt is to move as much on to 0% interest as possible so if your credit cards are not on 0% deals you could try the eligibility checker on this site to see if you would qualify. That way at least you know the repayments are reducing the debt and not paying interest. I would tackle those first plus any overdraft you have. What interest rates are you paying on the loans?

The most important thing is to stop spending on credit cards. Do a budget. Make a plan to make monthly repayments and tackle the debts one by one starting with the most expensive. There is no quick fix and borrowing to repay debt never ever works out.

Thank you for your message, I didn't accrue these debts through over spending on credit cads, but fancy things, or holidays, I don't smoke, drink, have a fancy car.... I had to get divorced, and then start again and from my marriage I had taken some of the debts as they were for the house, I left.....

I know its about spending wisely which is what I do, I am looking for help to build my life back up... not renaming debts as some have written.. im trying to get my life in order but im just struggling making ends meet with all the debt out goings

Many thanks

Grazelgirl

Grumpelstiltskin wrote: »

OK So you don't want to hear the truth.

Just carry on and ignore the advice you are given.

Sorry I didnt read any advise in that comment?
"Sorry to be blunt but you don't have the answer. The answer is paying off your debt.

Not taking out another loan and simply renaming the debt. That is a very worrying mindset to have."

Can you tell me where the advise is?

Willing2Learn

On your SOA

• What is the £151/month for next to motorcycle?
• What is the £119/month for next to car?
• You need to include a monthly amount for car and motorbike maintenance
• You need to be putting something aside every month for an Emergency Fund (this is an essential part of any successful monthly budget.)
• Ideally, you want to change your mobile to a SIM-Only deal as it is far cheaper.

Grazelgirl

Willing2Learn wrote: »

On your SOA

• What is the £151/month for next to motorcycle?
• What is the £119/month for next to car?
• You need to include a monthly amount for car and motorbike maintenance
• You need to be putting something aside every month for an Emergency Fund (this is an essential part of any successful monthly budget.)
• Ideally, you want to change your mobile to a SIM-Only deal as it is far cheaper.

The 151 is my motorcycle payment and the same with my car, mt car one is nearly finished. My family are all mechanics to maintenance is not an issue.
I do have an emergency fund that I have with my grandma ( when i had some spare it went to her to look after) currently £400

I have also put my pension payments on hold too.

The phone one would cost me to change.... im a bit !!!!!!ed with it, but i do get a bit in my wage to help with it as i do use it a bit for work :-)

Many thanks