Additional borrowing for debt consolidation.

Kurtisbaptiste1993

updated on a new thread

MorningcoffeeIV

Go to the DFW boards for advice on cutting costs and repaying the debts more quickly.

With such high unsecured debt, you're too high a risk for any significant further credit. Get the current debt paid down (you should be overpaying already if the debts are 'comfortable) and then focus on saving for the wedding. It's not something that ever needs expensive credit.

Home improvements can be done as and when you have the funds.

Martin_the_Unjust

Taking on more debt to pay off debt is never a good idea.

CliveOfIndia

I have to agree with the previous posters - taking on more debt to repay existing debt is financial madness.  Save for the wedding and home improvements, you do not need to get into further debt for these items.

And quite apart from the fact that consolidation is almost never a good idea, you'd probably struggle to get a loan anyway.  Firstly, £50K is way above what most lenders would consider for an unsecured personal loan.  Secondly, since they cannot guarantee you'd use the loan to repay existing debts, they have to work on the basis that any new loan would be in addition to - not instead of - your existing debt.  So when they run their affordability calculations, you'll likely find you'll struggle to be accepted, at least at anything approaching a sensible APR.

The most sensible advice I can give is to forget about taking on any more debt, just concentrate on clearing your existing debt before you even consider anything else.

Ryan_Holden

Welcome to the board.

I echo the above, and if you think about it, all you're really trying to do is borrow more money and make your existing borrowing cheaper. 

Break your debts down into what they are and pay off the most expensive ones you have with your spare income. 

At the moment, to a bank, you're a couple who have a lot of debt and just want to get some more debt. It sounds really mean but it's really what it is.

Nebulous2

This needs to be a wake up and smell the coffee moment for you, I'm afraid. 

You are at the upper end of affordability for a mortgage (4 x income) You also have a secured loan. 

Consumer debt becomes increasingly difficult to get as you go over 50% of your income. You are there already, and wanting to increase that to 100%. 

What you want to do would involve long-term finance for consumer goods such as the mail order ones that will be gone and forgotten, long before they are paid. Effectively mortgaging your future for short-term benefit. 

There are two main options for debt. Earn more (How easy will it be for your partner to get a job?) and / or spend less. 

[Deleted User]

At the risk of being shot down… You are clearly living way beyond your means. You already have £35k debt and are are asking for an additional £50k? I appreciate you say you will pay off the other debt with that £50K, but then what happens when they pot is dry and life happens? Based only on information in your first post, you need debt to sevice lifes hicups.

My worthless advice? You can't currently afford the life you want. Stop, budget, clear debt and save for the thigs you want.

DCFC79

Look at your spending and cut back, look at your utility bills, are you on the best rate for your Gas and Electric, insurances, are you paying for any of these appliance break down covers or boiler cover. I dont see you getting a loan, you should read this thread

https://forums.moneysavingexpert.com/discussion/6442965/consolidating-debts-buying-a-new-used-car

A bank/lender will see this as extra borrowing so your £35k turns into £85k, yes you say you want to use it for consolidating etc but the baank/lender has no idea of your plans.

How much are you wanting to spend on a wedding ? No need to go big, can have a simple gathering of x amount of friends in a chapel and go to a pub etc and invite more people for a big meal etc, no loan would be needed for that.

You already have a secured loan with payments of over £500 a month, you realise if you dont make the payments your home is at risk which it could be with the extra debt.

enthusiasticsaver

I would suggest you tackle the existing debts you have by paying them down in order of the most expensive first. If your partner is unemployed, your mortgage is approx 4 times your joint income and you have an additional secured loan with quite high repayments you will struggle quite rightly to get further borrowing. In fact I would go so far as to say anyone lending you £50k on top even if you consolidate existing debt is irresponsible. Debt consolidation never works in repaying debt.

I suggest you post on the DFW board to formulate a plan to get rid of the existing debt by paying it down rather than moving it on to a further consolidation loan.

cymruchris

https://forums.moneysavingexpert.com/discussion/6443773/additional-borrowing-for-debt-consolidation

You've probably not heard the advice you wanted to hear - but it's all good advice. Don't try and borrow your way out of debt. Put off the renovations and save for them (if the house isn't falling down - they can wait). Yes we all want nice things now (and appreciate you have a wedding coming up, which no doubt will be amazing, but there are ways to keep costs under control and still have a great day). It's probably time for a good hard look at those incomes and expenditures. What can you cut back? What can you cut down? What can you cull altogether? There are ways and means if you want to achieve it - but it's not an easy path. People do think they can keep on borrowing their way out with more borrowing - hopefully the advice above acts as a bit of a wake-up call and pulls together a plan of action to get yourself out of it using other means.

Herzlos

I'm surprised you managed to get a mortgage that size with that income and debt, unless it's all happened since the mortgage.

In any case:
(a) you're not going to get an unsecured loan for more than half of your income, and you're already over that.

(b) mortgage rates have flown up, so assuming you got a good one in August, expect to get a horrible shock when you need to renew it.

(c) borrowing when you're already in debt is a bad idea. I've been there and borrowed £7k into about £40k. Don't do it.

(d) borrowing for a wedding is a also a bad idea. It's nice to have a big party and all, but it's still only 1 day and starting your married life with years of repayments sucks. With a bit of work and compromise you can have a nice wedding for under about £2k, but you're still better doing that out of savings.

The only realistic way to improve things for you at the moment is to reduce your outgoings and then reduce your debt by paying it off. You're not at a crisis point yet, but you're not far away from disaster so I'd take a good look at it.

Maybe you can re-assess it in a year when your partner has been working for a while again too, as you'll have much better affordability.