Consolidation Loan Basic plus Commission

Poesklap

I've just applied for a consolidation loan with Nationwide, but they've informed me they'll only consider my basic income and not my commission. I earn around £2k basic wage, but more than double that in commission per month.

Are there any unsecured personal loan providers that consider total income? My mortgage provider considered my commission after all.

Ebe_Scrooge

Commission is not guaranteed, which is why they probably won't include it in calculations for an unsecured loan.  For a mortgage, they've always got the fall-back that they can repossess your house if you don't keep up repayments, so their money is "safer".

As is often stated on here, consolidation loans very rarely work, unless you can address the underlying cause of the debt.

Poesklap

Ebe_Scrooge said:

Commission is not guaranteed, which is why they probably won't include it in calculations for an unsecured loan.  For a mortgage, they've always got the fall-back that they can repossess your house if you don't keep up repayments, so their money is "safer".

As is often stated on here, consolidation loans very rarely work, unless you can address the underlying cause of the debt.

Appreciate that pal, but I feel we have. Previously we were stuck just servicing the interest on two credit cards (I know!), but I'm earning far better now. I'd like a structured way of paying back the debt at a lower interest rate.

[Deleted User]

With consolidation loans they also calculate based on the old debt + the new debt together as you could easily just waste the money on other things as they can't force you to spend it on the old debt. A single monthly payment that is lower is also somewhat of an invitation to simply run up the debt again on whatever you did last time so responsible lending rules mean they have to consider only base salary and if you could afford it if you got no commission for the duration of the loan.

Poesklap

Deleted_User said:

With consolidation loans they also calculate based on the old debt + the new debt together as you could easily just waste the money on other things as they can't force you to spend it on the old debt. A single monthly payment that is lower is also somewhat of an invitation to simply run up the debt again on whatever you did last time so responsible lending rules mean they have to consider only base salary and if you could afford it if you got no commission for the duration of the loan.

Appreciated, I actually set the repayments to the same amount I'm currently spending servicing the interest only. But I understand your point.

Dobbibill

Now that you have a higher income you may be better off snowballing the debt to become debt free. 
Why not pop over to the Debt Free Wannabe board and post a SOA.
Here is the link to a snowball calculator which will give you an idea of a DF date if you throw any additional pennies at one debt then another. Seeing one debt finish and recycling those funds to another and so on can be very motivational. 
http://www.whatsthecost.com/snowball.aspx

All the best

[Deleted User]

Poesklap said:

Ebe_Scrooge said:

Commission is not guaranteed, which is why they probably won't include it in calculations for an unsecured loan.  For a mortgage, they've always got the fall-back that they can repossess your house if you don't keep up repayments, so their money is "safer".

As is often stated on here, consolidation loans very rarely work, unless you can address the underlying cause of the debt.

Appreciate that pal, but I feel we have. Previously we were stuck just servicing the interest on two credit cards (I know!), but I'm earning far better now. I'd like a structured way of paying back the debt at a lower interest rate.

Only you can structure your finances, you have the control now you've just not had the lightbulb moment yet.

That lightbulb moment is when the gut-wrenching panic, the hard, harsh, frightening, reality, hits you and you know drastic action is needed.

Gathering all the debts together and paying them off as 1 isn't it because you're not addressing the root cause of money management.

Lightbulb moments are terrifying but necessary to succeed, a large number of us members have had it, we've learned from it, and know the signs.

MEM62

[Deleted User] said:

Poesklap said:

Ebe_Scrooge said:

Commission is not guaranteed, which is why they probably won't include it in calculations for an unsecured loan.  For a mortgage, they've always got the fall-back that they can repossess your house if you don't keep up repayments, so their money is "safer".

As is often stated on here, consolidation loans very rarely work, unless you can address the underlying cause of the debt.

Appreciate that pal, but I feel we have. Previously we were stuck just servicing the interest on two credit cards (I know!), but I'm earning far better now. I'd like a structured way of paying back the debt at a lower interest rate.

That lightbulb moment is when the gut-wrenching panic, the hard, harsh, frightening, reality, hits you and you know drastic action is needed.

Or, more commonly, it is when you just wake up and smell the coffee and start looking at borrowing and debt in a different way.   

MalMonroe

MEM62 said:

[Deleted User] said:

Poesklap said:

Ebe_Scrooge said:

Commission is not guaranteed, which is why they probably won't include it in calculations for an unsecured loan.  For a mortgage, they've always got the fall-back that they can repossess your house if you don't keep up repayments, so their money is "safer".

As is often stated on here, consolidation loans very rarely work, unless you can address the underlying cause of the debt.

Appreciate that pal, but I feel we have. Previously we were stuck just servicing the interest on two credit cards (I know!), but I'm earning far better now. I'd like a structured way of paying back the debt at a lower interest rate.

That lightbulb moment is when the gut-wrenching panic, the hard, harsh, frightening, reality, hits you and you know drastic action is needed.

Or, more commonly, it is when you just wake up and smell the coffee and start looking at borrowing and debt in a different way.   

^^^ That is certainly very true. It took me about thirty years to actually wake up! At which time I realised that those ads about being in debt on telly were aimed at me. It was a big shock - I responded to those ads and contacted StepChange and then had a DRO and my life turned around. But it really is quite a shock when you realise just what's been happening with your finances. And how absolutely cavalier and naive you (me) have been up to that point. 

MalMonroe

Sorry, OP, I meant to say would it be possible for you to get some 0% balance transfer cards? If you and your partner applied. I have two (paid off in full each month, since my wake up call) credit cards and both recently offered me balance transfers. So I spent on the one with the highest transfer fee and then transferred that to the other one. Set up monthly payments to ensure that the debt will be paid off over the 14 month period I've been given and bob's my uncle. (Although I do resent having to pay that transfer fee at all! 0% balance transfer fee would have been better...)