How to get a cheap loan to pay off debts...

shopaholiczoo

Hi There,

I'm Kris. I want to get a loan for about 10,000 to pay off my credit card debts & Overdrafts. I have credit card debt and 3 overdrafts, one for 800, one for 1500 and one for 220..... and all told it comes to over 9000 pounds (sorry my pound sign doesn't work!)
So I applied to Barclaycard for the 6.8% apr loan but unsurprisingly was turned down.
I bank with Alliance and leicester but only been with them 8 months. The 2nd month the silly woman at work didn't pay me (by accident) (back in october last year) the last month of that job, then I changed jobs, and then last month I went over my overdraft again. (which I'd only just increased)
so both occasions I had several DD's returned. I can only assume this had a rather bad affect on my credit score.
Now I desperately need the cash to pay off my o/d's and have just one payment, but I need a low interest rate or it's pointless, I have 3 overdrafts, 2 are with banks I no longer have my salary paid into, (Lloyds, which I have a standing order of money going into because I have a loan payment going out of it- about a year left on that loan, and the Halifax which I was trying to reclaim bank charges on. I've set up standing order to try and put some cash back in to pay off the o/d as it's 1500 quid!! But I had to transfer money back from my halifax o/d to my alliance Leicester account as I went over my o/d on taht account...) its' all a mess and I don't know what to do!
I just read about not re-applying for more loans when you've been turned down. I am going to apply to experian for my credit file, but what can I do in the mean time - is it worth applying for a loan with someone I already have a credit card with ? I have Tesco, Marbles (HSBC), Halifax, & Lloyds credit cards....

Hippychick

If I were you I would not apply for a new loan, consolidating is actually not a good idea.

As many people on this board have experienced they consolidate then don't cancel the cards and end up with even more debt than before.

I would actually suggest that you would be better off posting your statement of affairs (SOA see sticky at the top of this forum for guidelines) and we can have a look at your budget and see what can be cut back on.

Also take a look at www.whatsthecost.com this site is fab as it shows you which debts you should clear first thus saving interest.

GirlRacer_2

Hi Kris,

I don't think your going to be able to get very much help here regarding getting aloan. We are all debt free wannabees and many of us have consolidated in the past only to find ourselves with a massive loan and then spending on the overdrafts and credit cards. The advice you will get on here is how to budget.

I know it may not be what you want to hear but believe me it's the only way to get the debt paid off. As suggested by Hippychick post up your SOA and see what people can come up with.

Sorry I can't be more help but if you've been refused for a loan the chances are the only people who will accept you will charge you an extortionate APR.

Keep posting though and we'll see how we can help you.

GR x

shopaholiczoo

Thanks for your advice. I wil take a look.

I Understand what you're saying, I suppose at the moment my problem is that I'm so far over my O/D I don't now have any cash for what I do need eg fuel for the car, pet food....
Now, I can't keep on upping my O/D limit - besides they won't let me, and I don't know if I'm able to meet the payments for all my cards now that's the problem. Not until my O/D is cleared.....

floss2

I would suggest that you get in touch with one of the debt support charities ASAP...CCCS, Payplan or CAB. They will be able to help you to start to get out of this situation without resorting to borrowing more money & making your overall situation worse.

Their contact details are at the top of the DFW board.

Seaxwyn

Hi shopaholiczoo

It sounds as if you need to increase your income and/or reduce your outgoings to get the OD under control. If you post your SOA on here, we can help with that.

Getting a cheap loan wouldn't "pay off" your debts, it would just move them, and allow you to run up some more. From bitter personal experience, I believe a loan is the last thing you need.