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  • FIRST POST
    • Calmfab
    • By Calmfab 13th Mar 18, 1:49 PM
    • 9Posts
    • 7Thanks
    Calmfab
    Loan question
    • #1
    • 13th Mar 18, 1:49 PM
    Loan question 13th Mar 18 at 1:49 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
    • Unicorn cottage
    • By Unicorn cottage 13th Mar 18, 2:01 PM
    • 82 Posts
    • 145 Thanks
    Unicorn cottage
    • #2
    • 13th Mar 18, 2:01 PM
    • #2
    • 13th Mar 18, 2:01 PM
    Hiya

    Why do you want to apply for a loan? Would be best if we had an understanding of the debts you have and aprs etc. Do you know why the loan application got rejected?
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness"
    • Calmfab
    • By Calmfab 13th Mar 18, 2:12 PM
    • 9 Posts
    • 7 Thanks
    Calmfab
    • #3
    • 13th Mar 18, 2:12 PM
    • #3
    • 13th Mar 18, 2:12 PM
    We owe : 2.700 on a loan
    9.110 on cc
    8.900 on cc
    5.600 on cc

    Gosh it looks awful
    • Ebe Scrooge
    • By Ebe Scrooge 13th Mar 18, 2:20 PM
    • 4,127 Posts
    • 3,569 Thanks
    Ebe Scrooge
    • #4
    • 13th Mar 18, 2:20 PM
    • #4
    • 13th Mar 18, 2:20 PM
    In order to repay the leftover debts, we would like to get a loan.
    Originally posted by Calmfab

    Hmm, in order to repay the debts, you want to take on more debt ?


    Unless you're able to get a loan at a massively lower APR than the existing debts, consolidation is rarely a good idea. Firstly, all too often the loan is used to pay off the cards, then the cards are run up again, resulting in twice the level of debt. Also, as you've found out, lenders are often reluctant to lend in this scenario. The reason being, they have no guarantee that the loan will be used to pay off the existing debts - they have to assume that the loan will be used for a posh holiday or something, and therefore affordability comes into their equation.


    You'd be better off posting up an SOA and seeing where savings can be made in your outgoings. This would be the most sensible first step.
    I may not know much about art, but I know what I like.
    • iolanthe07
    • By iolanthe07 13th Mar 18, 2:54 PM
    • 5,031 Posts
    • 4,724 Thanks
    iolanthe07
    • #5
    • 13th Mar 18, 2:54 PM
    • #5
    • 13th Mar 18, 2:54 PM
    You have posted this twice, on here and the loans forum. This is really confusing for people who are trying to help you. I have replied to your other post.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Mahsroh
    • By Mahsroh 13th Mar 18, 3:08 PM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    • #6
    • 13th Mar 18, 3:08 PM
    • #6
    • 13th Mar 18, 3:08 PM
    As others have said, before considering taking out a consolidation loan, you need to understand how you've accumulated the debt in the first place.

    As Ebe Scrooge said, what often happens is you take out a consolidation loan with the best intentions, but then end up spending on your cards again, at which point you end up with the loan repayments, and more CC debt..... I speak from bitter, painful experience when I say this!!

    Complete a statement of affairs (SOA) using the following link and the good people on here will be along to offer as much help and advice as they can to help you tackle your CC debt:
    http://www.stoozing.com/calculator/soa.php
    • Unicorn cottage
    • By Unicorn cottage 13th Mar 18, 3:45 PM
    • 82 Posts
    • 145 Thanks
    Unicorn cottage
    • #7
    • 13th Mar 18, 3:45 PM
    • #7
    • 13th Mar 18, 3:45 PM
    We owe : 2.700 on a loan
    9.110 on cc
    8.900 on cc
    5.600 on cc

    Gosh it looks awful
    Originally posted by Calmfab
    Whilst you may think it looks awful you can tackle it. Do you know the aprs? Are you managing to make minimum payments or more on them? If you throw 10k at the debt you will be well on your way but it is best to where best to throw it. Best thing to do is post up an SOA as suggested. We have all been there
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness"
  • National Debtline
    • #8
    • 13th Mar 18, 4:15 PM
    • #8
    • 13th Mar 18, 4:15 PM
    Hi Calmfab


    Are the debts in your name or your partner's? And do you have any debts in joint names (or a joint bank account)? If you have a poor credit rating and a financial link to your partner that could be one reason he was declined. Another reason is creditors may be put off by his existing level of debt.


    As said above, you must be very cautious about taking out more credit to consolidate as it often leads to getting further into debt.


    A statement of affairs (SOA) is a really good starting point
    http://www.stoozing.com/calculator/soa.php. You can format it for MSE and post it back for more advice.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Calmfab
    • By Calmfab 13th Mar 18, 5:06 PM
    • 9 Posts
    • 7 Thanks
    Calmfab
    • #9
    • 13th Mar 18, 5:06 PM
    • #9
    • 13th Mar 18, 5:06 PM
    My credit score is fair, his is good. We have no debts in common. I have 2 credit cards, he has one and the loan. I will do the state of affairs when I can access a computer
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