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    • Calmfab
    • By Calmfab 13th Mar 18, 1:58 PM
    • 9Posts
    • 7Thanks
    Calmfab
    Getting a loan after paying a large amount of debt
    • #1
    • 13th Mar 18, 1:58 PM
    Getting a loan after paying a large amount of debt 13th Mar 18 at 1:58 PM
    Hi there,

    I hope you can help me and that I can make myself understood My husband and I are 26 K in debts. One close family member kindly/generously agreed to give us 10 k to help us out. In order to repay the leftover debts, we would like to get a loan. My husband credit score is really good and he was told that he was eligible for some loans however when he applied he got rejected. My question is : is it better to get the 10 K and put it towards the debts then apply for a loan ? Thank you.
Page 1
    • zx81
    • By zx81 13th Mar 18, 2:01 PM
    • 17,225 Posts
    • 18,307 Thanks
    zx81
    • #2
    • 13th Mar 18, 2:01 PM
    • #2
    • 13th Mar 18, 2:01 PM
    Your husband's score is meaningless. Lenders will look at your history and debt, in relation to your income.

    Unless your income is very sizeable, you should be looking to pay down some of your debt before borrowing more.
    • thriftylass
    • By thriftylass 13th Mar 18, 2:05 PM
    • 3,331 Posts
    • 27,290 Thanks
    thriftylass
    • #3
    • 13th Mar 18, 2:05 PM
    • #3
    • 13th Mar 18, 2:05 PM
    It's never a good idea to get a loan to pay off debt. It rarely works. How was the debt generated, can you sell any of it to pay it off.......
    It would be better to look into reducing the interest rates on the existing debt, for instance if any is on CC could you transfer to a 0% card? Also look into snowballing (i.e. paying off the highest interest rate debt first, once paid put all those payments towards the next highest interest rate). Do you also need to pay back the 10 from the family member. What arrangement have you made with them.

    Best also to post and SOA and list your debt and interest and someone more knowledgeable will be along with more advice. I agree the score doesn't mean anything. You probably just already have a high debt to income ratio.
    • Calmfab
    • By Calmfab 13th Mar 18, 2:09 PM
    • 9 Posts
    • 7 Thanks
    Calmfab
    • #4
    • 13th Mar 18, 2:09 PM
    • #4
    • 13th Mar 18, 2:09 PM
    The 10 K are a gift. We bring 6 k after tax. Thank you for your help
    • Candyapple
    • By Candyapple 13th Mar 18, 2:26 PM
    • 2,897 Posts
    • 2,232 Thanks
    Candyapple
    • #5
    • 13th Mar 18, 2:26 PM
    • #5
    • 13th Mar 18, 2:26 PM
    Please list all your credit card limits along with outstanding balances.

    Please list all your partner's credit card limits along with outstanding balances.

    Do you have any other loans / overdraft / car finance etc?

    Does your partner have any other loans / overdraft / car finance etc?

    Do you have any late payments / defaults / CCJs?

    Does your partner have any late payments / defaults / CCJs?

    What is your annual salary?

    What is your partner's annual salary?

    Do you have a joint bank account / mortgage?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • iolanthe07
    • By iolanthe07 13th Mar 18, 2:50 PM
    • 5,029 Posts
    • 4,723 Thanks
    iolanthe07
    • #6
    • 13th Mar 18, 2:50 PM
    • #6
    • 13th Mar 18, 2:50 PM
    The 10 K are a gift. We bring 6 k after tax. Thank you for your help
    Originally posted by Calmfab
    So your outstanding debt is £16K. With a take home income of £6K a month you should be able to crack this in a short time, but as other have said, an SOA will help people give advice.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • MEM62
    • By MEM62 13th Mar 18, 3:36 PM
    • 1,606 Posts
    • 1,229 Thanks
    MEM62
    • #7
    • 13th Mar 18, 3:36 PM
    • #7
    • 13th Mar 18, 3:36 PM
    In order to repay the leftover debts, we would like to get a loan.
    Originally posted by Calmfab
    This would not repay your debts, it would just shift them.

    My husband credit score is really good
    Originally posted by Calmfab
    Unless that assessment comes from a lender it is of little value.

    We bring 6 k after tax. Thank you for your help
    Originally posted by Calmfab
    Monthly? If so why are having issues addressing your debt. You should be able to clear this relatively quickly even without a hand out from family. Posting an SOA will get you some useful feedback.
    Last edited by MEM62; 13-03-2018 at 3:42 PM.
    • Tarambor
    • By Tarambor 13th Mar 18, 4:55 PM
    • 3,033 Posts
    • 2,193 Thanks
    Tarambor
    • #8
    • 13th Mar 18, 4:55 PM
    • #8
    • 13th Mar 18, 4:55 PM
    If you take home £6k a month after tax a better idea would be to stop spending money on crap, spend only on essentials and by that I mean real essentials not just what you consider to be essential - for example you'll have no need to buy any clothes or shoes any time soon, a meal and a night out is not an essential - and you could easily repay this without a loan in a matter of months.
    • John-K
    • By John-K 16th Mar 18, 7:01 AM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #9
    • 16th Mar 18, 7:01 AM
    • #9
    • 16th Mar 18, 7:01 AM
    Hi there,

    I hope you can help me and that I can make myself understood My husband and I are 26 K in debts. One close family member kindly/generously agreed to give us 10 k to help us out. In order to repay the leftover debts, we would like to get a loan. My husband credit score is really good and he was told that he was eligible for some loans however when he applied he got rejected. My question is : is it better to get the 10 K and put it towards the debts then apply for a loan ? Thank you.
    Originally posted by Calmfab
    Why do you want to shuffle your debts around like this? You write as though after taking out the loan your debts will be gone, but of course they will not be, you will just have changed the lender.

    What is the point in doing that?
    • John-K
    • By John-K 16th Mar 18, 7:05 AM
    • 654 Posts
    • 1,016 Thanks
    John-K
    Monthly? If so why are having issues addressing your debt. You should be able to clear this relatively quickly even without a hand out from family. Posting an SOA will get you some useful feedback.
    Originally posted by MEM62
    That does not follow at all, it all depends on outgoings.

    My mortgage and the service charge on my building alone come to more than the OPs take-home pay, leaving nothing at all to live off.

    OP, you clearly are spending an awful lot of money on something, what is it all going on? This is what you need to address, shuffling debts is unlikely to fix anything.
    • Dobbibill
    • By Dobbibill 16th Mar 18, 8:26 AM
    • 3,142 Posts
    • 4,052 Thanks
    Dobbibill
    Hi OP,

    You are in a very fortunate position having been gifted £10k.

    Don't move the rest of the debt - it isn't paying it off.

    Fill in a SOA and post it up. (click on format for MSE - then paste)

    With your income you should be able to make some inroads to the debt and get a plan in place. The SOA will give you a better idea of how much but make sure you are honest with yourself - if you spend £100 a month on coffees with mates don't try and kid yourself that it's only £20
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • thriftylass
    • By thriftylass 16th Mar 18, 9:04 AM
    • 3,331 Posts
    • 27,290 Thanks
    thriftylass
    That does not follow at all, it all depends on outgoings.

    My mortgage and the service charge on my building alone come to more than the OPs take-home pay, leaving nothing at all to live off.

    OP, you clearly are spending an awful lot of money on something, what is it all going on? This is what you need to address, shuffling debts is unlikely to fix anything.
    Originally posted by John-K
    Your mortgage and service charges are more than 6k a month? No pitty from me not having any money to live off. Move somewhere cheaper. Most outgoings at that level are by choice.

    Unless.....

    If they meant they only take home 6k a year together after tax, time to look for more income and stop spending.

    Totally agree a SOA would be good to give more tailored advice as were guessing income and outgoings here and might be coming to the wrong conclusions.
    Last edited by thriftylass; 16-03-2018 at 9:07 AM.
    • MEM62
    • By MEM62 16th Mar 18, 10:35 AM
    • 1,606 Posts
    • 1,229 Thanks
    MEM62
    That does not follow at all, it all depends on outgoings.

    My mortgage and the service charge on my building alone come to more than the OPs take-home pay, leaving nothing at all to live off.

    OP, you clearly are spending an awful lot of money on something, what is it all going on? This is what you need to address, shuffling debts is unlikely to fix anything.
    Originally posted by John-K
    We may never know. The OP might have bailed as they haven't been back to the thread in three days.
    • Calmfab
    • By Calmfab 16th Mar 18, 3:21 PM
    • 9 Posts
    • 7 Thanks
    Calmfab
    I'm sorry, I'm back and I now have a computer so I can do a soa. We have now paid our loan and one of our credit card. We are going to put as much as we can on what is left to be paid, we just would like to try to lower the interests if we can. Anyway off to do the soa
    • Sncjw
    • By Sncjw 16th Mar 18, 6:10 PM
    • 1,826 Posts
    • 1,087 Thanks
    Sncjw
    If you get a loan to pay off your debts your effectively doubling your debt. The lender won!!!8217;t know your using it pay off debts so they will asses affordability and loan rate based on the double the debt amount
    • John-K
    • By John-K 16th Mar 18, 6:53 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    Your mortgage and service charges are more than 6k a month? No pitty from me not having any money to live off. Move somewhere cheaper. Most outgoings at that level are by choice.
    .
    Originally posted by thriftylass
    It is pity. Single t.

    And I am not sure where you are coming from there, we have plenty to live off, the mortgage is comfortably covered by either of our wages. Why did you assume that either ai was struggling or asking for sympathy?

    There are some very strange posts on here sometimes...
    • thriftylass
    • By thriftylass 16th Mar 18, 8:09 PM
    • 3,331 Posts
    • 27,290 Thanks
    thriftylass

    My mortgage and the service charge on my building alone come to more than t
    he OPs take-home pay, leaving nothing at all to live off.
    .
    Originally posted by John-K


    The bit in bold let me to assume you struggled. Sorry if I was wrong.

    And sincere apologies for a slight spelling mistake, English isn't my first language.
    • John-K
    • By John-K 16th Mar 18, 8:45 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    [/B]

    The bit in bold let me to assume you struggled. Sorry if I was wrong.

    And sincere apologies for a slight spelling mistake, English isn't my first language.
    Originally posted by thriftylass
    OK, I see where you are coming from. I meant that if the OP had my outgoings then he would have nothing to live off. I can understand the misunderstanding, but not the weird comments about pity. Why would I want your pity, even had I been asking for advice?

    Did it make you feel good, superior perhaps, thinking that you were talking down to someone who may have made some mistakes? I cannot thinkmof any other reason for such a mean spirited post.
    • thriftylass
    • By thriftylass 17th Mar 18, 1:25 AM
    • 3,331 Posts
    • 27,290 Thanks
    thriftylass
    OK, I see where you are coming from. I meant that if the OP had my outgoings then he would have nothing to live off. I can understand the misunderstanding, but not the weird comments about pity. Why would I want your pity, even had I been asking for advice?

    Did it make you feel good, superior perhaps, thinking that you were talking down to someone who may have made some mistakes? I cannot thinkmof any other reason for such a mean spirited post.
    Originally posted by John-K
    I apologise if that came across wrong or I chose the wrong words. I just didn't understand the choice to have a house that costs 6k a month if that leaves nothing to live off. And no it didn't make me feel superior and it wasn't mean spirited. I apologised, no reason to have a go at me.

    Sorry for distracting from the original line of discussion
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