why won’t anyone lend us money for debt consolidation with £300,000 equity?!

addictedtobears

so, we own our home with no mortgage. both aged 51, house value around 300,000 we both work full time with a combined income of 75,000 before tax, 3 dependants (13, 16 year old twins) we’re stuck in a cycle with mounting credit card debts/ overdraft (started when i was on maternity and snowballed)  the monthly payments are crippling us and we have practically zero disposable income for any semblance of quality of life despite our decent income. we tried to remortgage a portion of the equity and were denied as our credit rating is poor (!) due to some missed payments and we’re maxed out on numerous cards plus a couple of unsecured loans. 
question is why! surely we’re a safe bet with such high equity?! what can we do? i’m sick of slogging my guts out (like most brits) to make payments that are going to just go on for ever, and ever. 

Grumpelstiltskin

The lender can't  be sure you will use the loan for consolidation and you would only be moving the debt not solving it.

Go across to the Debtfree Wannabe board for help

Nasqueron

You might get some suggestions elsewhere to use a secured loan but don't do this or equity release as it's expensive and debts against your house are never good

CliveOfIndia

addictedtobears said:

mounting credit card debts/ overdraft ...

some missed payments and we’re maxed out on numerous cards plus a couple of unsecured loans. 

Well, just taking your statements at face value, if you're reliant on credit cards and overdraft to fund your living expenses, that's a big red flag for any lender.  Add to that the missed payments, and it's not hard to understand why lenders are reluctant to advance you anything further.  The equity in your house is pretty much irrelevant - it could be argued that the simplest option is to downsize, then use the equity you've released to pay off all your debts.  Not an easy option to consider, I fully appreciate, but it's a question that wouldn't be unreasonable to pose.

addictedtobears said:

a combined income of 75,000 before tax, 3 dependants (13, 16 year old twins) we’re stuck in a cycle with mounting credit card debts/ overdraft (started when i was on maternity and snowballed)  the monthly payments are crippling us and we have practically zero disposable income for any semblance of quality of life despite our decent income. 

With no mortgage and a very decent income, the logical question is "why are you struggling to make ends meet?".  A sensible first step is to head on over to the Debt-Free Wannabe board, post an SOA and take it from there.

It doesn't matter what your income is, if you're spending more than you're bringing in, you're on a hiding to nothing.  That's where the SOA can be so helpful - it can focus your attention on where your income is going, and what steps can reasonably be taken to address the situation.

Please don't take my comments as being condescending, that's not my intention at all.  More a case of trying to be an objective, impartial observer offering some views.

daveyjp

No details of how much debt.

£10k will need a very different approach to £150k.

Isthisforreal99

Equity doesn't pay the bills every month.

If you have no mortgage and you are reliant on credit with a £75k joint income then there is a serious amount of overspending going on.

Appreciate 3 x teenage dependents eats up money (3 x expensive iphone contracts perhaps?) but you need to have a critical look at your monthly outgoings and determine what can be cut back.