Irresponsible lending - some advice 9 August 2022 at 4:20PM in Credit cards 4 replies 239 views

ian1231

Hi, first let me start by saying I fully understand I took out these loans and I intend to pay them all back...However

some context, around may last year my debt had risen to between 20-25k (can't remember the exact figure off the top of my head) covid had put my partner at the time essentially out of work (because of the contract they were getting around £60 a week via furlough down from £200 from usual working) I was struggling with it all/avoiding things and in this moment of mental struggle I took out a 12k loan(the most I could get) from "Company A" for "debt consolidation" thinking this would help. long story short it didn't help and the credit cards started to fill back up
Fast forward to October and things are getting worse financially and mentally so I take out another "debt consolidation" loan from "Company B" for £5500, same as last time clear the cards and try manage.

As of the time of writing my debt is basically the exact same, fortunately my mental state is a hell of a lot better (for anyone like me who thinks reaching out to people won't help it really does) and my salary has increased to a point where with some help from friends and family I can pretty much make all my payments on time and feed myself without the need for anything like a DMP or more borrowing

My question is do I have a case? At the time my pre tax salary was 25.5k, I don't remember giving them any detail in regards to a breakdown of my incoming/outgoing just my annual salary. I feel had they done a proper look into my situation at the time I would never in a million years been given those loans

ian1231

I've just noticed this is in the wrong thread. Please close and I'll repost on debt free wannabe

[Deleted User]

It seems your debt has plateaued from what you say, so the lender would have assessed you as being a good enough risk - and have been proved right to date.

Few lenders look into your monthly expenditure, but look at your credit files and declared income.

I would focus on getting the debt down, without resorting to further borrowing. It sounds as if you'll be able to clear it, as long as you can wean yourself off consolidation borrowing.

ian1231

Deleted_User said:

It seems your debt has plateaued from what you say, so the lender would have assessed you as being a good enough risk - and have been proved right to date.

Few lenders look into your monthly expenditure, but look at your credit files and declared income.

I would focus on getting the debt down, without resorting to further borrowing. It sounds as if you'll be able to clear it, as long as you can wean yourself off consolidation borrowing.

The plan is to pay the debt down (Dec 2024 can't come quick enough) just wondering if I can get anything back, I'm just curious because I was already borrowing nearly 100% of my income at the time and adding the first loan even though it was for "debt consolidation" took me well over borrowing 100% of my income which they should have been able to see on my credit file?

[Deleted User]

If it appears on the files(s) they checked, they would have seen it. If not, no.

If they saw it, they may have believed your debt consolidation pitch and felt it worth the risk.