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In trouble with Debt - Now cannot get a loan

edited 30 November -1 at 1:00AM in Loans
33 replies 3.8K views
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  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    Repaying your wife's debts was the first mistake. She needs to sort out her overspending and whilst there may be reasons/excuses for why this happened she and you both need to address this. The situation will not improve whilst she continues with this destructive financial incontinence.

    You need to be working as a team so your wife should be contributing to the bills especially if two of your loans were taken out to clear her borrowing. If 50% of your wife's income is going towards debt repayments she may need to look at some debt solution like an IVA or DMP. If she is not named on the house then even bankruptcy might be an option.

    One thing for sure though is debt consolidation does not work as you have already seen. You have already consolidated twice by taking out loans to repay debt and still the debt is getting higher rather than being repaid. Stop now and address the core reason for you getting into debt which is overspending. Look at your budget and maybe your wife should phone stepchange or put a soa on here to get more detailed advice.

    People often come on here and say as you have that borrowing more to repay old debt will sort out their problems. It almost never does and inevitably in a few years the debt is higher again. It just delays the inevitable which is cutting back on expenditure or increasing income is the only way out of the debt spiral.
    Early retired in December 2017

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  • cymruchriscymruchris Forumite
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    I would like to add that all the advice you are hearing is really good advice - but it might not be advice you want to hear. You might have it in your mind that consolidation is an option - and you'll manage your way out, and will then get frustrated further as no lenders will consider you. As an ex-bankrupt - please do consider very strongly the advice you've been given above. In some cases you're going to have to make significant lifestyle changes if you want to begin attacking your debt mountain - as that's what it is right now. Kids or not - unless you do something - and soon - the 'kids' might not have anywhere to live if you carry on at your current rate. You have to face up to the changes needed, no matter how challenging it's going to be. There are plenty of recommendations as to how you can save money - are you on a satellite tv package? Do you have a huge internet deal? Can you go freeview? Cut yourself down to a much cheaper internet package without the bells and whistles? What do you spend each month on socialising? The questions - and ways to potentially save are quite considerable - so do as people have said and start listing it all in a statement of affairs - people here will be more than happy to help advise on how you can make improvements that shouldn't be too painful (and some that might be painful but will get the mountain down quicker)
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • Great advice on this thread. I just wanted to add my support as you sound in a difficult position.

    Most important thing is sitting down with your wife and ensuring you’re both on same page as else it’ll never work. Then accept you cannot borrow your way out a debt problem. It’s a long hard road of cutting back and paying off ASAP.
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