consolidation problem

martinbadger

I am trying to consolidate my debts on to a mortgage, but i have already been refused application for a current account alone by 2 banks due to 2 defaults on my credit history. What chance will i have with a mortgage? The defaults date back to 03 and both balances were paid in full and upon contacting them both say that they have no control over what the reference agency wish to show. The 1st default was a dispute over cost so due to late payment this was defaulted, the 2nd was just serious money trouble and couldnt pay. What can i do about these showing defaults on my history when the agency say its up to the creditors to remove it and the creditors are saying the agency should remove it? I feel i'm going round in a circle and all the time i am waiting i am struggling to maintain financially stable months due to high out goings. Being self employed is difficult enough with cash flow but when i am having to pay £1700 p/m on loans and cards i have no money left for food. I am desperate for advice please help!!!

immoral_angeluk

Generally consolidation is a bad idea. It doesn't address why you got the debt in the first instance and quite often you end up paying more for the priviledge of simply moving your debt around. There are other ways of dealing with your debt. I would suggest your contact the CAB, CCCS or Payplan and see what your options are.

martinbadger

The problem is i have is i don't believe in IVA's, and im sure thats is what the answer will be.I wish to pay back every penny i have borrowed but it is increasingly difficult when i have my finances spread every where with a credit rating of 800 and i am starting to miss payments at the beginning of a month now due to insufficient funds. And of course then banks just love to add there cut! I seriously need to lower my monthly out goings to have a life. These defaults are all that are stopping me smoothing out the bumps so to speak. I understand where you are coming from with the history of how i got in this mess however it has been a harsh lesson learned and dont wish to live like this anymore.

IWantToBeFree_2

Answer may not be an IVA, it could well be a DMP where creditors will normally freeze interest and you pay what you can afford (based on your SOA).

I would post you SOA (statement of affairs) on here so that posters can try and give you a helping hand on seeing where you could cut back and contact CCCS. They will only recommend an IVA if there is no other viable option.

immoral_angeluk

Why don't you agree with IVA's?

martinbadger

My problem, my debt, my fault. My Silly mistake should not be written off that easily plus i dont want a poor credit rating for another six years. Please remember i own my own business and credit is a very important part for me job.

RAS

Martin

CCCS can offer IVAs but we have yet to speak to anyone on here who is doing one with them. This may be because IVAs are only suitable for a small number of people, whatever you see on TV.

There are loads of people who are paying back everything they owe through Debt Management Plans

ltm07

Hi Martin. Sorry i can't help you but i would just like to say that OH & I are in a similar situation to you,although not that bad that we cannot afford food. We only have £119 a month left after paying everything out & that's to pay for car MOT,car maintenance,Xmas & birthdays & going out. We've thought long & hard about consolidating our £32k debts onto our mortgage & the paperwork arrived in the post this morning. However,although we knew that we'd have to pay more back in interest over the 16 years we want the extra cash for,we were staggered to see that the sum to be paid back was over £54k even though we worked it out at around 49k! I think we'll go back to the drawing board & look at other ways to save,whilst not letting our debts get us down too much. We will carry on doing overtime for our little luxuries & if the worst comes to the worst & there's no overtime available or any of us have to take time off we will look into going down the DMP route. Good luck whatever you decide to do..

rayday2

martinbadger wrote: »

My problem, my debt, my fault. My Silly mistake should not be written off that easily plus i dont want a poor credit rating for another six years. Please remember i own my own business and credit is a very important part for me job.

In your first post you said you have a poor credit rating - not in so many words but I am on a DMP and I have been able to open current accounts, I seem to collect them!

Also a consolidation secured loan or mortgage will effect your credit history adversly anyway the more credit anyone takes on the less you can have if that makes sense.

CCCS_Sarah

Hi Martin,

First of all welcome to the boards!

As immoral_angeluk has mentioned, generally consolidation loans are a bad idea – rather than paying off the debt it is just moving it from one place to another. So if you are already struggling and you secure the debt against the house this is would then put your home at risk if you had a bad couple of months and missed a couple of payments.

There are a number of different options that could be available to you but without having all your details it’s hard to give advice. CCCS do have a free online debt advice facility called Debt Remedy where you can put together a financial statement and be provided with the best way forward for you or you could call our helpline (0800 138 1111) for a appointment and speak to a counsellor.

Whatever route you take all your options will be discussed so you can make an informed choice of how to deal with your situation and whatever route you take support would also be given.

Teacher2301

Hi Martin,

Have you contacted Equifax or Experian at all - these companies hold details about our financial activities and are whom banks etc go to, to get details to base their judgement of risk. You can ask to see your credit report and look at it carefully. You can ask Equifax or Experian to look in to the defaults and challenge them if they have been unfairly added to your credit report. I had a spate of identity theft about 8 years ago and it played havoc with getting credit - but both companies were very helpful in resolving this matter. I would also contact the institutions where the bad debt was from and ask them to up-date or remove the entries in light of what you have said. Worth a try.