Debts taking over - Trying to save

ChocolateLabOwner

Hi. I posted this in the loans section, but have been advised to post it here too

I will copy and paste my posts, but ill leave a link to my original thread aswell

Thank you

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Hi, as the title suggests myself and my wife are in trouble with debt and I cannot get a loan to cover it, even though I have a good credit rating.


Im looking for some advice on where to go next, as the stress is now getting to me and is starting to effect my life, work and marriage, and I cannot let my family down.


I will start by saying I have had a god search around the site and read a lot of threads, but nothing has been very relevant to my situation.


Firstly, some background. I am 32 year old male, married and 2 kids. I have a house with a mortgage, and 3 bank loans in may name only, with my own bank. I am employed full time and receive a good monthly pay. I alone pay the mortgage, services bills and council tax. I use the Clear Score app to track my credit rating, which tells me I am 'soring high' and a good 60 points above my area average and the UK average.
My wife has multiple small loans in her name, a poor credit rating and has been poor with money control, prior to our marriage. She is not on the mortgage, and dose not contribute towards the household services bills, but does do the shopping.


We both have a car each, and the youngest is in nursery (with a monthly bill). other bills are the usual phones, internet etc.


Now, the problem.
Only one of my loans is for me. I took the other two out to cover my wife's debts. At the time this was not an issue and she paid me the monthly cost. But then Her father died and things got off track and out of hand. The outcome of this, a few months on, was that she became dependant on 'payday loan' companies instead of talking to me. This went on for a short while until it all came to light and we talked it through and sat down to make a spreadsheet of all the debts. After we had worked out a total of her debts and the 3 loans I have, I started looking at one loan to cover them all, to pay off my wife's payday companies and to consolidate my 3 bank loans into one loan to leave us with one easy payment split between the two of us. I have been looking for this loan in my name only, as I am under the impression (from my clear score app) that I have a very good credit rating and that will give me more opportunity or chance of being accepted.


Except I am not being accepted.


Now, I feel like I have worked all my numbers and figures out correctly, and the new loan total and monthly payments (split between the 2 of us) would be lower than what we are both paying currently. But I am still being rejected. I feel like our total debt is not high, even though its higher than I would want it to be, in comparison to some cases I have read about on this site.


Im Looking for what im doing wrong, or where I can turn to next. Thank you

ChocolateLabOwner

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moneysavingexpert
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Original post

U will need to put the dots in. It wont let me post a link

Moneybutterfly35

Hi, not sure if I’m right but I think I’ve seen on here that payday loans tend to destroy chances of further lending. Check out the main website here I think Martin says something about them.
Also don’t go with just clear score, my ratings are different across the board between these martins credit club through Experian and credit karma through Equifax I think it is, all free to get.
Hope this helps, sorry if it doesn’t.

lindens

This probably needs moving over to the main debt board - you have posted in the Diaries board

Debtnomoreplease

Morning,
I read through your post last night on the loans page.
You have been given some excellent advice on there and not sure you understand what people are saying... Getting a larger loan to cover all the loans and having one payment may seem like it will 'fix' all your problems, but trust me it won't!

If you really 100% are wanting to become debt free, then you find the route and plug the hole... Stop spending and cut back as far as you can.... Live on bare minimum for a few months. Pay down the bests your have and become debt free that way and learn a whole new respect for money.
A new loan will be for a longer period of time and more Interest, when you can 100% manages this yourselves.

I did the whole consolidation loan and like most people on this site, I learnt the hard way and ended up in a far worse situation with double the debt! It took me a further 2/3 years to pay off the debt.

Please please please take the advice of the people on here and the knowledge they have.

Starmummy

The lenders don't look at the loan as using it to pay off the debt. They look at whether you can pay off the loan on top of existing debts. As you are looking to take out a loan that covers debts in your name and your wives name, lenders can effectively see that you are trying to more than double your current debt levels.
They would be irresponsible to lend to anyone in this situation.

Other posters are correct. You, as a family, have not addressed your spending habits for whatever reason. Even if you could consolidate it won't fix your debt problem unless you address your spending problem.