Good credit score, pay on time and can't get a loan

d0gf1shd0gf1sh Forumite
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I've struggled with depression for many years and I'm ashamed to say that I spent money to deal with it. The thought of having something new in my life was a fix enough to keep my spirits up. I didn't want to admit the consequences. I have totalled today that I have a balance of £10k over 3 credit cards. I'm a homeowner and my partner has poor credit so I've also had to finance our car and a £24k loan in my name (which we pay jointly for both). TO BE HONEST those re-payments aren't the issue as we don't have long left on them. I pay my credit cards on time, every time. I make sure any money I owe comes out first. The issue is, I'm deeply unhappy because I'm left with so little. I pay min payments and can't afford to pay any more. So I'm barely denting what I owe. I don't want to go bankrupt as this will affect my job I fear which will just make things worse. And I'm getting turned down for lower interest personal loans which I'd hoped would help me put a dent in what I owe. I just don't know what to do. Is it because I have too much credit out already that I'm not eligible for a £10k loan to consolidate? I just want to get on top of the credit cards and feel that the only way to do this is lower interest? Other balance transfer credit cards won't go up as much as £10k and I was hoping I could get on top of the worst one first which is at £7k of that. Any advice would be much appreciated. I'm so tired of treading water.

Replies

  • edited 28 March 2021 at 4:33PM
    DCFC79DCFC79 Forumite
    40.5K Posts
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    edited 28 March 2021 at 4:33PM
    You have 2 options, either increase your earnings or reduce your spending, I think the decline is a blessing in disguise.
    Your credit score isn't seen by lenders, not even seen by anyone, your history is whats important.
  • jemima82jemima82 Forumite
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    Please post an SOA for advice on where to cut spending.
    what was the £24000 loan used for - anything you can sell?
  • You’re reaching the end of the line for cheap credit, and possibly for any at all for a while, so it’s time for you to have a proper look at where you stand, and how to move forward.

    Posting a full statement of affairs is the best way to begin, both for you and so that others can give you the best advice.
  • sourcratessourcrates Forumite
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    As a homeowner, bankruptcy would not serve you well, so I'd forget that idea.

    If you can`t increase your income, and at the same time reduce your outgoings, then homeowners only have the choice of IVA or debt management, most likely the latter may suite you.

    SOA is the first hurdle to cross.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • d0gf1shd0gf1sh Forumite
    6 Posts
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    jemima82 said:
    Please post an SOA for advice on where to cut spending.
    what was the £24000 loan used for - anything you can sell?
    It was actually to consolidate debts from years ago for both myself and partner. Needless to say my mental health has played a big part. I’m not spending anymore and just want to start getting on top of it. What is an SOA?
  • sourcratessourcrates Forumite
    26.3K Posts
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    d0gf1sh said:
    jemima82 said:
    Please post an SOA for advice on where to cut spending.
    what was the £24000 loan used for - anything you can sell?
    It was actually to consolidate debts from years ago for both myself and partner. Needless to say my mental health has played a big part. I’m not spending anymore and just want to start getting on top of it. What is an SOA?
    Consolidation never a good idea, as people normally retain their old financial habits and tend to end up even deeper in debt than they were before.

    SOA (Statement of affairs) can be found here -

    SOA Calculator (stoozing.com)
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
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