getting a loan is the problem - any solution ?

Matthew1279

Not sure whether this is a loan or a creditcard im after. Homeowner ( with mortage ), i have 4 credit cards, approx £9000 worth of debt -paying interest. Bit of a mess. 
Cannot get a loan, i assume because of the 4creditcards, used to , and never had issues paying back , tesco, sainsburys etc loans.

So - ideally, a loan of approx £9000, to which i would pay off the 4 creditcards - just about.  But where? tried a few, my credit rating was in the 600's now around 575. Thoughts welcome.

DrEskimo

There’s probably not many other options without getting into very high interest. You could explore transferring to 0% credit cards but acceptance likely to be equally unlikely. 

Over all this isn’t the worst news. Consolidation loans rarely work as a debt solution. Borrowing more money isn’t the answer, so you can begin to explore other debt solutions that are typically more effective.

I would advise you to head over to the debt free wannabe sub forum and seek advice there.

MrFrugalFever

No lender will give you specific details as to why they have declined you but you can make some educated assumptions based on your previous and current credit utilisation.

Picture this…..Your a lender, you have an applicant requesting a loan of £9,000 with you so you duly go about checking the history of that applicant using 1 or more credit reference agencies. You find that there’s already £9k worth of credit card debt across 4 lenders and the applicant appears to be making just the bare minimum in payments. You see that the applicant hasn’t really made a big dent in any of the debt and therefore appears to be struggling to service it.

As the lender, you have a choice. You add £9k worth of debt to the applicant, knowing they are already struggling with no guarantee that these 4 credit cards will be paid off and then not utilised at all, or you simply make the decision to decline the lending.

I know what I’d do.

It’s a harsh assumption and a difficult pill to swallow but I would suggest your best move is to now consider a different approach to tackling your debt and head on over to Debt Free Wannabe forum board for further assistance.

Dobbibill

This could be a blessing disguise - consolidation loans rarely work.
Head over to the DFW board and look at snowballing your debt.
This is paying minimum plus a few quid off 3 of the cards while throwing as much as possible at the card with the highest APR. As you pay off one card, repeat for the remaining 3 cards using the payments you were throwing at card 4 for the next and so on. 
All the best. 

Herzlos

In addition to the snowballing method to pay the cards down, it's worth having a look to see if you can have a clear out and make some money selling stuff you no longer need. You'd be surprised how much some old electronics, clothes and household items are worth.

DCFC79

Matthew1279 said:

Not sure whether this is a loan or a creditcard im after. Homeowner ( with mortage ), i have 4 credit cards, approx £9000 worth of debt -paying interest. Bit of a mess. 
Cannot get a loan, i assume because of the 4creditcards, used to , and never had issues paying back , tesco, sainsburys etc loans.

So - ideally, a loan of approx £9000, to which i would pay off the 4 creditcards - just about.  But where? tried a few, my credit rating was in the 600's now around 575. Thoughts welcome.

I dont think a loan is what you need, as advised pop over to the debt free wannabe board and post a stement of affairs

I think you need to cut your spending, drop the sky tv package, look at any subscriptions you are paying for that either you hardly use or dont use at all.

Could you get a second job, just a few nights a week.

Brie

Yes - as others say - the loan provider will need to ensure you can cope with £18k worth of debt as there's no guarantee that you will use the load to pay off the cards.  

The debt board is very useful as there may be lots of useful suggestions if you submit a statement of accounts showing all your incomings and outgoings.  It needs to be detailed and it needs to be honest.  You don't actually need to submit it for others to look at as simply the act of organising the details may show you some obvious ways to help solve your situation.  

Meanwhile check to see if any of the cards you currently have are offering a 0% balance transfer deal.  And can you take advantage of it??

phillw

As well as cutting all your costs & checking if you can get any 0% balance transfer deals, if you can't and you are struggling to pay then you can ask them to freeze the interest.

macman

A consolidation loan doesn't 'pay off' your £9K debt. It just replaces 4 debts with a single debt, possibly at a lower APR, but probably over a longer term and so at a higher total cost.

[Deleted User]

macman said:

A consolidation loan doesn't 'pay off' your £9K debt. It just replaces 4 debts with a single debt, possibly at a lower APR, but probably over a longer term and so at a higher total cost.

And of course allows presumably 9k of CC debt to be run up again unless the person is extremely diligent 

fatbelly

Have you done a soft search on 0% cards?

https://www.moneysavingexpert.com/eligibility/credit-cards/search/?goal=CC_BALTRANSFERV2