How the flip are you meant to get a debt consolidation loan if your declined because your debt high!

okidoodle wrote: »

Have you just been to new lenders and been looking online? It might be worth approaching one of the banks you already have credit with, explaining that you are looking to manage your debt better, and that you would like a loan to pay off some existing credit and consolidate. I did that with my bank and their deal was that they could do that if they reduced some of my other available credit, so lowered the limit on my credit card and overdraft which were both paid off by the loan.

It wont always work with everyone, the OP needs to increase his income or make saings somewhere.

Hiya,

Just reading through I can see how it must be getting pretty frustrating as people are arguing against what you believe to be the best way forward.
In my experience, everyone here has your best interests at heart but equally they see time and time again where someone hasn't accepted that they've dug a hole and it's so deep that the banks see you as too much of a risk.

One thing which I don't think I've seen is this - are you making a lot of applications for new credit (I.e. consolidation loans)? If you are and failing then that will trash your credit profile further and make you look even riskier.

Secondly, I can't see where you have stated your income and type of employment you're in? If you're salary is £50k and you have debts of £31,500 with other outgoings such as rent and bills being 40% of your income then a loan on top of your existing credit commitments would be seen to be irresponsible lending.

You may be at the stage where you need to just chill out and do nothing in regards to addressing your debt for 6 months or so. Just make your payments, slightly above minimum ideally. While you do this, consider speaking to a Credit Union as they may be more forthcoming but they may need to see you actually saving for a period before being willing to loan to you.

The last thing I would say is that you probably need to be less 'positive' in regards to your debt. Saying things like "I planned to get into £31,500 because I wanted to live while I was young enough to enjoy it" sounds like "I've maxed my credit options, nobody will offer me more and it's not fair".

Good luck!

I can see where you are coming from, I would like to get a debt consolidation loan however no-one will lend to me due to my debt to salary ratio. I would like a £10,000 loan over 4 or 5 yrs to pay off all my debt into one manageable monthly payment, I do not want to go down the route of a DMP as my credit rating is slowly recovering so I want to keep on improving it. Im struggling to pay for petrol / food at the moment.

I even wrote to my bank to try and appeal their loan decision for me, and said that I would be happy for them to send the money to my debtors directly so I don't actually get the money myself (long shot, I know) and then close my accounts down. I have really learn my lesson with the credit cards and am determined not to open them again.

I can understand where you are coming from totally.