Loans query

kate7911

First time posting on here but I have a question about loans. 

Through lockdown maxed out 2 cards and a catalogue account. It works out to £7000. I am now a single parent, I live in a private rented house. I work part time. I receive universal credit and I get maintenance. All my money really goes on paying off my dept. I have never missed a payment and actually my credit score isn’t too bad. Due to cost of living I’m now running out of money to by food, essentials etc. I asked my bank yesterday about getting a loan so I can cover what I owe so there’s just one payment going out, one interest charge and I can still pay off what I owe but I’ll have shopping money but it’s a straight no. They won’t touch me. Also the same with an interest free credit card. I’m not sure what else I can do. I’m doing everything right financially but don’t seem to get anywhere. I don’t want to apply for loans elsewhere because I’m worried about it affecting my credit score. Does anyone have any suggestions please 

MEM62

You cannot borrow your way out of debt, so looking for loans is not the answer.  Post up an SoA on the Debt-free Wanaabe board and you will receive some good advice on dealing with your debt.   

MorningcoffeeIV

kate7911 said:

I don’t want to apply for loans elsewhere because I’m worried about it affecting my credit score. Does anyone have any suggestions please 

Don't pay any attention to your credit score. It's not real and doesn't matter if it gets affected.

Stop borrowing and go to the DFW boards for help.

sourcrates

Kate, there are a number of debt solutions available to you that can help you really easily.

Borrowing further funds is not the answer, never has been, never will be.

Debt solutions range from informal debt management plans, to more formal solutions for larger debts.

At 7k, your debt is quite small, so can easily be dealt with, if you want to pop over to debt free wannabee and post your SOA we can start the process to get you debt free.

badmemory

What they are looking at when you want a loan to pay off your debts is you owing £7k plus a £7k loan leaves £14k debt, which they consider as unaffordable.

FashionHeart

kate7911 said:

First time posting on here but I have a question about loans. 

Through lockdown maxed out 2 cards and a catalogue account. It works out to £7000. I am now a single parent, I live in a private rented house. I work part time. I receive universal credit and I get maintenance. All my money really goes on paying off my dept. I have never missed a payment and actually my credit score isn’t too bad. Due to cost of living I’m now running out of money to by food, essentials etc. I asked my bank yesterday about getting a loan so I can cover what I owe so there’s just one payment going out, one interest charge and I can still pay off what I owe but I’ll have shopping money but it’s a straight no. They won’t touch me. Also the same with an interest free credit card. I’m not sure what else I can do. I’m doing everything right financially but don’t seem to get anywhere. I don’t want to apply for loans elsewhere because I’m worried about it affecting my credit score. Does anyone have any suggestions please 

Your 'good' credit score does not matter to anyone, lenders look more into your current debt and what you can pay off.
Debt consolidation rarely works simply because you have no guaranteed intention to pay off your current debt.
For all they know, you will take out the loan and not pay off your existing loans and credit cards and that's why they will view you as a high-risk borrower.