Guaranteed loan last week and now no chance - lock down?

GoldStar16

Unsure of what is going on but I used the MSE elegibility checker last week and requested 15k over 4yrs and had 5 companies at 95% and a few at 90%. I also checked with my bank who said, yes we can borrow you this, since from what we know we can give you a lot more.

Brilliant. Applied for a loan with my bank today for 11k and was flat out declined. Went back to MSE no loan company will touch me. If going through the bank I want to borrow less as I'd be topping up a loan of 4k to make up the 15k needed. 

Applied to Marks and Spencer as I hold a card and they say, yip you can have 15k at 8.7% just finish the application and then a big fat no, again.

Not really sure what's changed in a week. Seems the lower interest rates arent actually easy to get at all and all we're doing is damaging our credit files. Checked all 3 after M&S and other than renewing my o2 contract (it takes the phone out as a loan) 3 weeks ago which is £510 there is no changes. 

No missed payments in the last 6yrs, 8k of credit available on my BOS and Barclaycard credit cards with only 33% utilisation. 

Earnings £22,500 (I don't include overtime as not guaranteed) 
Outgoings £350 to current loan
Credit card £120
Mortgage £210
Council tax £118
Wife picks up the utilities and pays her own car, insurance. 

Looking to consolidate £14,854 over three years at £361.00 (paying off wives credit card and a loan she stupidly took out with an interest rate of 42.8%

[Deleted User]

What's changed in a week is risk. There's been a lot of job losses and they're not coming back any time soon.

You also have a lot of debt compared to your income, so doubling that up will be a very unlikely scenario.

Head to the DFW boards for advice on tackling the debt.

GoldStar16

I'm not struggling to pay debt. Was more doing it to pay off the wives and just get rid of a £1500 on my credit card. 

Socajam

Banks are trying to protect themselves, with job losses, credit cards delinquencies and bankruptcies etc, the financial nightmare have just started. 

[Deleted User]

GoldStar16 said:

I'm not struggling to pay debt. Was more doing it to pay off the wives and just get rid of a £1500 on my credit card. 

I didn't say you were struggling.  I said asking to double it - which is what considolidation does in the short term - is a big ask. 

The DFW boards will help to get rid of the debt earlier.

GoldStar16

That's what I was thinking Socajam.
I am a key worker so hoped that may carry some reassurance but obviously not.

I just find an interest rate of nearly 43% absolutely stupid and the idea of it coming out of our income makes me feel a bit queasy. 

GoldStar16

Deleted_User said:

GoldStar16 said:

I'm not struggling to pay debt. Was more doing it to pay off the wives and just get rid of a £1500 on my credit card. 

I didn't say you were struggling.  I said asking to double it - which is what considolidation does in the short term - is a big ask. 

The DFW boards will help to get rid of the debt earlier.

Apologises, I misunderstood. So although I'll only be paying £1500 off myself that would double it? Or do they think I have 15k to consolidate? I personally don't I have £1500.

DrEskimo

They won't assume you are consolidating, they will view it as debt on top of your already existing debt.
Consolidation is rarely the answer anyway, as it can be viewed as a 'fix' when in fact it just moves things around. Debt is the symptom, you need to work out the problem. Is it general overspending, not having enough reserves to cover big items, etc.? Work out what the issue is and just work on paying down the debts as quickly as possible and working out a strategy to not get in the same situation again in the future (most likely a set budget).

The Debt Free Wannabes is a good place to get advice on all this.

Moving the high interest loan would be nice, but it's not imperative. Given your income and current debt levels its probably unlikely...Paying it down as quickly as you can is the next best thing (which you should do anyway, even if you did move it to a lower interest rate).