Can't get a loan

catkin759

been trying to get a loan to consolidate my current credit card debt but have been unsuccessful.

They are all maxed out as well as my overdraft and I am in a spiral
Just started a new job and can afford repayments just want all my debt in one place and not 4

Please help!!

[Deleted User]

You won't be able to consolidate.

Go to the DFW boards and post up an SOA, where they will help you cut costs and repay faster.

foxy-stoat

Its a blessing, trust me.

Nothing wrong with having 4 lenders to pay instead of 1.

Sncjw

Consolidating is doubling your debt and here’s no garuntee you will pay the money back. If your struggling to pay now the lenders will see you will struggle for double the debt

catkin759

Please can you put that in simple terms as I don't understand

MallyGirl

If you owe £10k across 4 cards you would need to borrow another £10k to move the debt (note I did not say 'pay it off'). As far as the new lender is concerned you need to be able to afford £20k of debt. There is no guarantee that you are going to pay the cards off - many people don't and then come back later with twice the debt.
If you set up direct debits it takes no more effort to pay 4 cards than 1 loan. What you are probably trying to do is reduce your monthly payments by paying over a longer period but that just means you pay more interest and are in debt for longer.
If you go to the debt free wannabe section and fill in a statement of affairs (SOA) people may be able to offer guidance for paying off the debt sooner without further borrowing

catkin759

Oh I see, its nowhere near that high but i understand why it would be seen as more risky

thanks for the help!!

MEM62

catkin759 wrote: »

Please can you put that in simple terms as I don't understand

You cannot borrow you way out of debt. It just doesn't work.

The fact that you cannot borrow from mainstream lenders tells that you should not be considering additional borrowing. You will only qualify for sub-prime lenders and the interest rates will likely be much higher than you are paying now.

You need to find ways to cut your expenditure and throw the freed up cash at your existing debt. Start with the one that has the highest interest rate.

Sncjw

But you are still doubling your debt. The lender will be assessing you on affordability on the total debt you will have if you got the loan.