Help!

tbaker31 · 16 January 2019 at 1:39PM

First of all sorry if this is not the right place to post but I am new on here and just looking for some advice.

This morning I went into my bank and was hoping for either a credit card or a loan to consolidate my existing debts. My bank advised me for a loan. End result was I got declined. I have numerous credit reference agency reports and all the reports suggest I have a good score and that very few places would refuse me credit.

The reason I wanted the credit card/loan is that in a few months I have 27.9% interest going on £3534.36 balance on my MBNA credit card and I just am worried that the interest will spiral into unmanagable payments. Equifax said I could perhaps dispute the decision with Halifax, so I have printed off my report from them and want to go back in but I was advised by my fiance to speak to people on here first after she had watched Martin Lewis' show on TV.

Sorry if that isnt enough information for anyone to help, if you need more I am happy to provide. Just need help and advice on what to do now

sourcrates · 16 January 2019 at 3:13PM

Moved to general DFW forum.

heartbreak_star · 16 January 2019 at 3:52PM

Do you have other debts?

HBS x

EssexHebridean · 16 January 2019 at 4:25PM

Don't do ANYTHING about consolidation yet. Generally speaking consolidation is a horrible thing as it rarely addresses the root of the problem, just effectively "sticks a plaster over the top". Your fiancee is a sensible lady and it sounds as though you need to get your debts cleared so you can marry her before too long as she's clearly a keeper!

First stop is to take a deep breath, then gather together at least 6 months, and preferably a years worth of bank, card and other statements. The get yourself a Statement of Affairs (SOA) filled in - the link is in my signature if you need it. Post that back into here and we can take a look and see where you may be able to make savings - you'd be surprised what we can come up with! You need to make the SOA accurate and honest - there's no judgement here - make sure it reflects how things are "right now" not what you think you *should* be spending.

First step: SOA - this gives you a proper budget to work to
Second: live with that budget and see where it works for you, and where it doesn't - adjust as needed
Third: See if you can shift the debt to a 0% balance transfer card - preferably at zero fee, but we'll have to see if that's achievable
Fourth: Pay off debt as fast as you can without living on dry bread and water
Finally: Live happily ever after (well, hopefully!) having learned how to manage your money.

tbaker31 · 16 January 2019 at 5:32PM

@HBS yes I do. I have another credit that is close to being paid off (at least something it going right). Then a loan that has 18 months left as well as things like finance agreements for my car and household items.

@EssexHebridean Ok thank you I will do a SOA and post back in here ASAP.

Don't think I will be able to move to 0% balance transfer card having just been declined for a loan.

EssexHebridean · 16 January 2019 at 5:34PM

tbaker31 wrote: »

Don't think I will be able to move to 0% balance transfer card having just been declined for a loan.

Doesn't necessarily follow - different lenders have different criteria so let's wait and see how things look on the SOA.

tbaker31 · 16 January 2019 at 5:38PM

EssexHebridean wrote: »

Doesn't necessarily follow - different lenders have different criteria so let's wait and see how things look on the SOA.

Sounds good, will get on to that right away.

MallyGirl · 16 January 2019 at 5:39PM

tbaker31 wrote: »

I have numerous credit reference agency reports and all the reports suggest I have a good score and that very few places would refuse me credit.

CRA reports will show your credit history but they do not lend money.
There would be no point trying to raise a dispute with Halifax - they made a business decision not to lend to you.

The lenders will assess affordability - they have to assume you are wanting to borrow extra money on top of what you already owe. If you add up your existing debts does it come to more than half your gross salary (a guideline)? If so you will probably struggle to borrow more.
A full SOA posted on here will allow people to offer advice on the basis of facts - it is worth the effort to put one together.

tbaker31 · 16 January 2019 at 5:46PM

MallyGirl wrote: »

CRA reports will show your credit history but they do not lend money.
There would be no point trying to raise a dispute with Halifax - they made a business decision not to lend to you.

The lenders will assess affordability - they have to assume you are wanting to borrow extra money on top of what you already owe. If you add up your existing debts does it come to more than half your gross salary (a guideline)? If so you will probably struggle to borrow more.
A full SOA posted on here will allow people to offer advice on the basis of facts - it is worth the effort to put one together.

Ok thank you for your comment. I am in the process of completing a SOA now. I actually wouldn't be able to tell you if my debts add up to half of my gross salary or not as I have never added them up in relation to my income before. But when i complete the SOA I will also calculate the proportion of debts to my gross salary too

MallyGirl · 16 January 2019 at 6:10PM

it is not a hard and fast rule - but it is is a rule of thumb where borrowing more than half salary starts to get harder. They also assess on other outgoings, actual salary, dependents, all sorts.

Finding out exactly what you owe is essential to getting it all under control - how much, APR, when loans will be paid of, etc

tbaker31 · 16 January 2019 at 9:23PM

Here is my SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ £2024.11
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ £400
Total monthly income.................... £2424.11

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. £378
Rent.................................... £500
Management charge (leasehold property).. 0
Council tax............................. £155
Electricity............................. £45
Gas..................................... £45
Oil..................................... 0
Water rates............................. £54
Telephone (land line)................... 0
Mobile phone............................ £55
TV Licence.............................. £13
Satellite/Cable TV...................... £65
Internet Services....................... 0
Groceries etc. ......................... £100
Clothing................................ £50
Petrol/diesel........................... £400
Road tax................................ 0
Car Insurance........................... £34
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... £14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... £100
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. £2008

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. £15000
Other assets............................ 0
Total Assets............................ £15000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... £19091....(£378)......3.99%
Total secured & HP debts...... £19091.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................£3870......£50........27.9%
Barclaycard.......................£746.......£20........0%
Total unsecured debts..........£4616......£70........-

Monthly Budget Summary
Total monthly income.................... £2,424.11
Expenses (including HP & secured debts). £2,008
Available for debt repayments........... £416.11
Monthly UNsecured debt repayments....... £70
Amount left after debt repayments....... £346.11

Personal Balance Sheet Summary
Total assets (things you own)........... £15,000
Total HP & Secured debt................. -£19,091
Total Unsecured debt.................... -£4,616
Net Assets.............................. -£8,707

**it is worth noting I am making more than the minimum payment on the Barclaycard in order to pay it off quicker**

Help!

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