Consolidating debt with poor credit.

Douglasjoseph
Douglasjoseph Posts: 1 Newbie
First Anniversary
in Loans
Hi

Just wondering if anyone can help, between my partner and I we have around 25k debt spread across a few credit cards a couple of which aren’t 0%. We would really like to consolidate it with a loan but because are credit scores are not fantastic we can’t borrow what we need. Please any help would be appreciated !

Douglasjospeh !

Comments

  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Douglasjoseph wrote: »
    Hi

    Just wondering if anyone can help, between my partner and I we have around 25k debt spread across a few credit cards a couple of which aren’t 0%. We would really like to consolidate it with a loan but because are credit scores are not fantastic we can’t borrow what we need. Please any help would be appreciated !

    Douglasjospeh !

    Your credit reports aren't the best, lenders see your reports/history.

    Looks like it's going to be tricky to consolidate as your wanting to take on more debt which is how lenders see it.

    I think you need to look at your spending and cut back, get rid of your costly phone contracts, Sky/Virgin etc.
    Post over on the debt free wannabe board.

    How has it got to be £25k ?
    How has it got to this point ?
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,578 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
    Consolidating debt is the worst thing you can do and will inevitably lead to higher debt. You need to look at your outgoings and repay the debt starting with the most expensive. As your finances improve you will find it easier to get 0% deals
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    You don’t get rid of debt by consolidating it, you get rid of debt by cutting back on outgoings, and trying to increase your income.

    If that is not sufficient, then look at debt management, or another regulated option, consolidation is what a lot of people do right before they go bankrupt.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • System
    System Posts: 178,092 Community Admin
    Photogenic Name Dropper First Post
    You're being refused because you have £25k of unsecured debt and your income isn't sufficient to pass affordability tests with lenders. If you're struggling to meet daily living expenses you would be better posting on the debt free wannabe board as well as contacting Stepchange.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    This is never going to fly, its probably a good thing too.

    Sell stuff, down value the car(s), clear the highest interest debt first, get some of it on 0%, spend less, pay more off the debt.
  • -taff
    -taff Posts: 14,478 Forumite
    First Anniversary Name Dropper Photogenic First Post
    As Sourcrates says, you don't get out of debt by borrowing more money.
    You're on the slippery slope now, the only ways to truly get out of debt is to earn more or spend less.


    Go to the dent free wannabe board and post an SOA for help with budgeting and bills.


    And have a think about why you are in debt now. Until you realise why you're in debt, you won't be changing anytime soon and will continue to get deeper and deeper into debt.
    Shampoo? No thanks, I'll have real poo...
  • JasonHand
    JasonHand Posts: 197 Forumite
    First Anniversary First Post Combo Breaker
    Having been in this position in the past its ever so tempting to consolidate the debt "into one easy payment" but never works out that way. Its just another step on the slippery slope in my opinion.

    Granted cutting costs and earning more isn't as easy it sounds (I wish it was). So if this sort of thing isn't that easy as you may have already cut down on all unessential costs then I'd recommend contacting Stepchange.
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273 Forumite
    Name Dropper First Anniversary First Post Debt-free and Proud!
    Go onto the DFW boards and people can help you there :)
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • Dobbibill
    Dobbibill Posts: 4,134 Ambassador
    First Anniversary Mortgage-free Glee! Name Dropper First Post
    On paper you look like you want to have £50k of credit/borrowing/debt (whatever term you want to use). Although you say it is to pay off the debt you have a lender doesn't base it on that and looks at the likelihood of you earn enough and are repaying £50k.


    Borrowing to get out of debt is not going to work. Some good suggestions above. You could pop over to the DFW board and post a SOA. The good members of the forum will be able to give you tailored suggestions for your situation.

    All the best.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards