How the flip are you meant to get a debt consolidation loan if your declined because your debt high!
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No, there are always options. Just a matter of being able to see them clearly. Why not post your SOA? We can have a look at things and explore all available options...:)I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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Because to the banks it will look like you will have £63K in debts. Not £31500.
They don't know that you are going to pay off your cards and loans.
As one poster on here said once "how do they know you are not going to spend it all on harbio" I would love to give credit to who said but can't find the post.
You don't have enough income to service that level of debt. Hence why they won't lend to you.
Yours
Calley xHope for everything and expect nothing!!!
Good enough is almost always good enough -Prof Barry Schwartz
If it scares you, it might be a good thing to try -Seth Godin0 -
Yes. Very annoying. Then they should not be misleading in their advertising.
Just call it what it is, a new loan, additional borrowing.
I just wondered if there was a more innovative finance company out there who actually offer consolidation loans.
It seems sadly not.0 -
Thank you. But i'm on top of my finances.
But if there is an opportunity to reduce my interest rate from 25% to 7% say, then I!!!8217;d like to take advantage.
That extra £281 saved a month can go off the loan, not interest payments as it does not.
It!!!8217;s more the frustration that I cannot consolidate my credit card debts into one loan, but ironically, I have too much debt.
Surely someone will no crSorry, not sure what happened with the site/reply there.
To finish my point. Surely it is crazy to say someone who would benefit most from a consolidation loan can!!!8217;t get one because they are trying to consolidate too much debt and save the most amount of money.
Maddnes
But you're not on top of your finances, are you? You're in hock to the tune of £31.5k at 25% interest, and can't get out of the situation you find yourself in. If you could, you wouldn't be on here asking for help.
You got into the situation you're in from overspending on credit cards. As others have said, do a SOA and we may be able to help you get out of the mess you are in.
But it's not going to be easy."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Its low because as far as the financial world is concerned you are up to your eyeballs in debt. Not being a home owner counts against you because you don't own a home they can go after if you default.My credit score is 701 (poor), ONLY due to affordability. Never missed a payment. No late payments. No CCJs or otherwise. Not a homeowner either, which for some bizarre reason counts against you.
Until you rack up debts again on the cards you cleared with the loan which is why consolidation never works. You've even got the proof right there in front of you in your own case as no doubt you have multiple cards from doing 0% balance transfers with the intention of paying them off and how well has that gone? Clearly not very given you have £31.5k in double digit APRs. There are countless examples on this and the debt free wannabe board of people who have got consolidation loans with all the best intentions and then got up to their eyeballs again.If I could combine into a nice say 7% APR loan over a longer term (5 years), I've worked out it would save me £281 a month.
You are FAR from on top of your finances. The average level of personal debt in the UK us £8000. Someone who has £31,500 of debt, mostly on cards at an APR in double digits, is no way in control of their finances and is well on the path to bankruptcy. To any financial institution you look like you're living a life you can't afford on credit.
Unfortunately for you you've reached the point where you now pay for your financial irresponsibility. No lender is going to give you any more credit unless it is at an eye watering APR from a sub-prime so there's no point trying. Now is the time in your life where you have to sell stuff, cut down your spending to the bare bone essentials and pay off the debt. The party is over, now its time to suffer the morning after hangover.0 -
I appreciate you trying to help.
But this !!!8216;mess!!!8217; I am in was planned. And I do not regret it. I am not panicking. Nor worried.
The nature of my post was to see if others had experience of being declined for credit from companies that advertise themselves (falsely in my opinion) as debt consolidation loans.
The proposition is pretty simple really. I can continue to pay 25% interest. Or I can find a company who will pay these debts off and offer me a lower interest rate.
Since this is not possible. I have to suck it up for 2 years until two main loans are paid in full, freeing up £780 a month, which can be diverted to the high interest credit cards.
Ironically, at this stage, I will probably also be eligible for lower interest loans as my debt to income ratio will be lower, increasing my credit score.
As I said before, I chose this route. I have had an incredible time travelling around the world and experiencing things others dream of, but now do not have the opportunity to do. Big savings balances, but too many life commitments to just leave their job for a year, or go hiking with kids.
I respect their decision not to get in debt. And I prefer it when people respect my life decisions.
I will leave you with this thought.
Imagine you were queuing for the most amazing thing you always dreamed off. Maybe it is a concert, a club, a plane to somewhere you have always dreamed of going. In front of you is an endless queue of people. It!!!8217;s £10 entry. You may get in, you may not. Then someone says to you, I will let you skip the queue but instead of paying £10, you have to pay £15.
Would you do it?
Some would, some would not. I am in the first camp. I choose to pay more by borrowing money to do the things I most wanted to do, while I had the chance, knowing very well that my future self would have to take the burden.
It is not for everyone. But I am so, so glad I did it this way.
The goal now is to find the cheapest way to pay it back. Simple.
So please refrain from calling my life choice a mess. I find it a little insulting. You may not agree with my view on life, but I ask you to respect it.0 -
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Yes. This is a very valid point!
Although... surely payments never being late or missed is a big indicator the person knows how to manage their credit score.
Surely this is what credit scores are for? To assess a persons credit worthiness and past history.
No 1 but you cant see your score.
You don't manage your credit score.
Credit histories/files are what lenders see.
I cant see you getting another loan to consolidate as you already owe too much.0 -
You decided to do fun things and borrow the money for it.
Now you're paying it back. That doesn't mean you will always pay it back, or continue to pay it back because for all you know, you could lose your job next week.
No-one will lend you money because you are a bad risk. Yes, people have loaned you money because in the past you were a money making opportunity and they wanted your business. Now, you look like the worst proposition, because if they lend you the money, suddenly, you've doubled your debt on a salary that won't support the figures.
No-one owes you the right to pay back less money, the choice was yours when you decided to borrrow and have no regrets.
This looks like it's a bit of regret now though otherwise you wouldn't be posting asking how to do it.
Go to the debt free wannabe board and they will help you find ways to save money to pay more towards the debt to finish it sooner.Shampoo? No thanks, I'll have real poo...0 -
Thank you.
But maybe you could show me where I said the three assumptions you have claimed?
1. I regret it
2. I cannot afford the debt I have
3. I think I have the right to consolidate my debt0
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