Why Can't I get a Loan?????

gimmeshelter1710

Hi Guys

I am sooooooooooo frustrated. In November 2005 I went in to hospital for a day procedure and ended up in intensive care for 5 weeks and a further 5 weeks recovering. I then had a District Nurse everyday from Jan 06 until July 2007. I eventually earned my right to Disability LIving Allowance, it took a full year to get it and actually went to a tribunal. Anyway, during this time I was receiving payment protection which was a godsend! I know there are opinions of Martin and others that they are a bit of a con but for me they saved me a lot of worry and heartache while I was trying to recover my health.

Now that I have returned to work 17 hrs per week - the payment protection has stopped. I owe approximately £6000 to MBNA (I know I know the worst mistake I have ever made in my life!!!!!) prior to my illness I was being tortured with phone calls letters etc. How I got in to this mess is a long story I just want to get out of this mess.

I see no need for me to be making repayments every month when I have the ability and finances to pay a loan - the unfortunate thing is no-one will give me one. I will be able to pay this loan off as soon as my medical negligence case is sorted out.

I contacted Experian got my credit report which is above average and this is the only bloody debt I have. I owe no money to anyone else.

Anybody got any ideas where I can go next? - I earn approximately £14,000 per year (I know Northern Ireland's wonderful wages!) and Disability Living Allowance of £350 per month) Is it the fact that I am on Disability Living Allowance that is stopping me getting financial help??.

I expect MBNA are making too much money out of me but I would rather the money was in my pocket than theirs!!!!!!!!!!!!!!!

Thanks in advance.

tigtag02

First of all your DLA wont stop you from getting a loan.

Second , £14k is a damn good wage for 17 hours a week. Its nearly £16 an hour.

What I dont understand is why you just arent making payment to MBNA ~ you would only have to do this with a loan, they wont hold out for your payout!!

The only difference I can see is a lower APR but if you cant get a loan then its all academic.

Your best best is to throw as much extra cash at the £6k as you can to clear it.

southernscouser

Hi there and welcome to the site.

The fact you were being harassed before for payment suggests to me that you weren't making regular payments or payments on time. This will impact your 'credit score'.

Getting into more debt to pay off debt generally speaking isn't the best cause of action.

Based on £6,000 the maximum your payment would be is £180. Is that right? If you can't afford this, how much can you afford to pay off?

Is trimming down other outgoings a viable option?

elainec

{I see no need for me to be making repayments every month when I have the ability and finances to pay a loan }

erm, dont really understand this statement,
if your not making payments to this debt will it not be impacting your credit record?

gimmeshelter1710

Sorry, I've confused you all - I am making payments on the cards I resent this because I am paying so much more than I would if I could get a loan!.

This is my debt I got myself into it I am not disputing that but the fact that I want to consolidate it into one payment and end my dealings with MBNA is what I'm after and no-one seems to want to help.

Also my wages are pro-rata which means I am taking home about £550.

Hope this clears up any confusion about my position.

I would also like to say that I have learned my lesson and will NEVER NEVER NEVER have a credit card again...........................

dancingfairy

Hmm how many companies have you applied to for a loan? Is it just one or lots? If you have applied to several and had no luck then stop appyling as applying to too many will show up on your credit score and make it evern harder for you. I think you may just have to just keep making the payments. How about as Southern Scouser's suggestion of trimming your outgoings? or you could always try a challenge like make so much to pay off a loan or debt. Have you got anything you could ebay or anything?

Sorry I haven't got any better suggestions.

redsquirrel80

I can appreciate the feeling that it would be nice to be rid of MBNA, but if you can't get a loan then your only option really is to keep paying them - or don't pay and wait for them to send it to a debt collector, who will be even worse with the annoying phonecalls etc! If you're struggling with the payments then I'd suggest writing to them with details of why you can't afford the amount they're asking for - ask if they will freeze interest and/ or accept reduced payments until such time as you can afford to pay more (or pay it all off - as you say you're expecting a lump sum at some point in the future).

As to why you can't get a loan, it is likely to be either your credit record or possibly the amount you earn.