Loan Needed 17k

Brighty

Hi all

My ex has just dropped the bombshell on me that she is 17k in debt because of the last year or so (long story, probably my fault). 10k on a nationwide loan over 7 years at 6.7% and 7k over 4 years with some cowboy outfit called 'Household bank' at 28.7%!!!!!. She has no idea about money and didn't know what she was doing.

I have told her i would sort out this mess for her. She has moved home to her parents and can afford to pay about £300 a month to clear this lot.

I need to sort her out with a £17k ish loan at as low a rate as possible. She only earns about 12.5k per year and has had 4 addresses in the last 3 years. I don't know what her credit rating is like but is probably not good.

Who out of the current best loan providers are most likely to give her a loan of 17k at a decent rate? Don't want to apply to someone who's gonna turn her down and give another hit on her file.

Your help would be much appreciated

Brighty

savvy

Hi Brighty
Just bumping your post up in hope of some help for you.
savvy

Fran

The best advice you can give her is to have a look at this site eg. Debt Free Wannabe board also get to Citizens Advice or another debt help centre (see Martin's article on main page). Strongly advise her not to take out another loan as she would just be adding to her problems.

Brighty

Hello

Thanks for the replies.

After a bit of pondering on this one, this is what I plan to do.

The 10k nationwide loan is at a reasonable apr and due to the possible fragile nature of her credit rating, I’m gonna leave it well alone.

We have already gone through a budget together and she can afford £300 per month to clear this. She only got into this state due to a very bad period of comfort spending and going out, due to a pregnancy followed by miscarriage, followed by her mother being in intensive care for months on end with little chance of survival. She now has everything under control, with support from me and a couple of other close friends. Her mother is also on the mend. What needs sorting is the 7k household bank loan.

I have applied for an early repayment quote for the household bank loan and am gonna get her credit reference reports. I will then apply for a new loan to pay off household bank. Either with one of the best current offers (northern rock etc) or we will go to nationwide and ask them to extend her current loan with them.

Once I’ve got that sorted, if her credit rating can take it, I’ll start a bit of stoozing on her behalf to earn her some extra cash.

What are your thought on this plan?

Brighty

p.s How can i move this thread to the debt free wannbe board?

Milky_Mocha

Sorry I don't have any help to offer. Just thought I should mention I think its refreshing to see you are on such good terms even though she's your ex. You seem to genuinely care. :-)

Fran

Brighty wrote:

p.s How can i move this thread to the debt free wannbe board?

Send a pm to savvy

Brighty

Just putting this back up, as it's been moved from another board and is a bit lost at the bottom.

Thanks

Brighty

ffs

Even if she could refinance this debt it would probably not be in her best interests. Instead a DMP is probably a very good idea. Her ability to pay £300 per month means that it is within the limits that the CCCS would allow to arrange a DMP on her behalf.