Refused Consolidation Loan on affordability - MAKES NO SENSE !!!!

GFUNK83

Hi folks ,

So i have been looking for a loan to consolidate debts i have on various credit cards.

I have

one @ ~£10k (Pay £250 p/m)
one @ ~£6k (Pay £200 p/m)
one @ ~£1500 (Pay £40 p/m)


I wanted to take out a loan to wipe out the biggest one and eventually see light at the end of the tunnel as to getting rid of it.

I did the soft search on here and was given 85% chance of acceptance from Santander on a £9000 loan over 5 years costing something like £170 monthly (given that I am paying £250 towards this debt each month and it still wouldn't be gone in 5 years with that amount and how much APR is on it , it seemed the loan was a great deal.

anyway I was refused based on affordability ??

How can this be when for the last 2 years ive been "affording" to pay £250 EVERY MONTH!!! ????

Anyway its very frustrating and I approached my bank about the same thing about 9 months ago and guess what ………….. THE SAME RESPONSE FROM THEM TOO !!!!

This makes no sense.

I cant afford to increase my monthly payments to these cards to get them down any sooner but I need to do something !

This 17k debt is freaking me out !!

Willing2Learn

They don't know that you will be paying off your cards with the loan. As far as they are concerned you would be adding £9,000 to your level of debt

Why not head over to the DFW board? You could post up your Statement of Affairs (SOA) and we could try and plot a course for you to navigate your way out of debt

[Deleted User]

It makes lots of sense. You have a track record of taking on too much debt. Giving you more debt isn't a smart move for a lender.

As above - look to cut your costs and repay the debt you already have.

GFUNK83

"As above - look to cut your costs and repay the debt you already have."


Its not just as simple as that though isn't it !, if you are tied into contracts etc I cant reduce anything

[Deleted User]

Nothing worthwhile is simple. But that doesn't mean it can't be done.

People have dug themselves out of bigger holes than this one.

Willing2Learn

GFUNK83 wrote: »

Its not just as simple as that though isn't it !, if you are tied into contracts etc I cant reduce anything

There are always a number of different solutions. You have chosen just the one option, consolidation. But the data recorded in your credit files, added to the data you submitted in your loan application, has led Santander (and your own bank) to believe you cannot be trusted with that level of debt. So you need to consider all your available options...

BoGoF

Even if you got the loan you wouldn't have been getting the advertised APR and you be paying more than £170 per month.

You need a more targeted aporoach to your CC debt. What are the interest rates on those 3 cards? What is the minimum payment on each card?

lindens

GFUNK83 wrote: »

"As above - look to cut your costs and repay the debt you already have."


Its not just as simple as that though isn't it !, if you are tied into contracts etc I cant reduce anything

no-one said it was simple, but it's completely doable to tighten your belt a little and pay off the debts maybe even quicker than that loan would have taken to run

head over to the debt free wannabee section of the board, read the newbies thread and start today!

good luck

BoGoF

I see you have another thread on the go that started last March. Back then your CC debts were £16,000, so they have went up since then. There is the reason you won't get a loan.

If you can't reduce your outgoings you need to increase your income. Another part time job an option?

Willing2Learn

BoGoF wrote: »

I see you have another thread on the go that started last March. Back then your CC debts were £16,000, so they have went up since then. There is the reason you won't get a loan.

In that old thread, GFUNK83 did not respond to the suggestion that they complete an SOA, so that they could received advice, guidance and support to find an appropriate debt solution.

Edit: @OP - Your old thread has kindly been 'bumped'. This is your opportunity to look at your income, expenses, debt repayments and monthly budget. Have a little faith in us to be able to help you

username901

I don't think they'll be back, not liking the answers they're getting.