Huge Debts, Looking to consolidate

Mayweather96

Hello,

 

I’ve posted here before about a few different things and have found it helpful so find myself here again.

 

Over the last 3-4 years, I’ve been extremely pinned down by a gambling addiction I couldn’t shake for years. I’ve been clean for a few months now – which is a story in itself.

But the aftermath is obviously very messy and I’m currently sitting on approx. £40k debt, possible a tad less.

 

Because I’ve become more risky to lend to over time, some of the loans I have are horrendous, the worst of which is just under 40% APR over 3 years.

I’m at the point now where I’m paying just over £2k a month in repayments alone. And it’s looking that way for the next few years because of the high interest rates I’ve got.
I’m extremely lucky to have gotten a pay rise to £57k recently, so I have a big shovel so to speak. But I’m desperately trying to consolidate.

 

I’m living with my parents still but we have a really bad relationship and they’re on the verge of kicking me out.
I just want to be normal and live a normal life now, rent my own place, finance a decent car, go on holidays.

 

I’ve done loan calculators online and you can get a £40k loan with Sainsburys (and probably others) over 7 years at circa £620 per month.

With my new wage that would leave me with £3000 left over to myself for a half decent car and to rent somewhere of my own.

But understandably, no one is going near me with a barge pole, regardless of affordability.

 

Does anyone have any ideas of how best to deal with this? The high interest is literally killing me on these loans and I wish I could just pay an affordable amount over a longer period of time so I can do normal things. I definitely do not want to go the DMP / IVA route. I’ve been in a DMP before, and my defaults have only just dropped off after 6 years. The last thing I need are credit issues going forward.

 

Any advice would be appreciated

Thank you.

Grumpelstiltskin

So gross pay £57K debts £40K  How do you know Sainsburys will give you a loan at a good rate of interest?

They don't know you will use the loan to pay off existing debts.

Could you give us a list of your debts giving repayments, interest rates and totals owing.

Mayweather96

Grumpelstiltskin said:

So gross pay £57K debts £40K  How do you know Sainsburys will give you a loan at a good rate of interest?

They don't know you will use the loan to pay off existing debts.

Could you give us a list of your debts giving repayments, interest rates and totals owing.

I know for sure Sainsbury's won't give me a loan, I'm pretty sure absolutely no one is going to give me a loan. 
I'm just wondering what other options I've got if any. 

I'll look to get them all written down and their outstanding / APR

Thank you 

fatbelly

I think the op knows they can't get a decent loan because of credit history.

We're going to need a statement of affairs to give better guidance.

Please don't rule anything out at this stage.

swingaloo

You say you haven't gambled for a few months yet your debt has gone up from 27 to 40 grand in the last 6 months. Please dont try to borrow more and get in even deeper debt.

Superhoopza

If you find a half decent loan with that level of salary and debt, please let me know!

enthusiasticsaver

If you don’t want to go down the DMP route your options are limited to just cutting back as far as possible and repaying the most expensive debts first. Consolidating into a loan won’t help you even were you to be offered a loan. 

londoner2019

Echoing other comments on this thread - six months ago you posted that you consolidated while being in 27k of debt and now it's at 40k and you're looking to consolidate again. This is exactly what others regularly advise against. 

Good luck on your journey, - I would honestly focus on the debt before holidays and financing a car. 

Andyjflet

Just a quick mention about your goals, don't finance any of them, don't borrow money to buy a car! pay for your holidays cash, when you break the gambling cycle you'll be knee deep in consumer debt with a car and holiday. 

Lonelygambler

Hi. 

I’m an addict. This illness is brutal, have you started to seek help? 

Money should be secondary right now. Treating this illness is priority. 

Many people will not understand. I do. 

The issue with the loan is if you use it, consolidate and then create more debt. Or like me would gamble £1k at a time. 

LG