We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Getting a loan after paying a large amount of debt
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.
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.
0
Comments
-
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.0 -
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.01/26: OD £1200 600, CC £3914 3317, family £3100, loan £5618 5306- total: £13832 12323, mortgage £58,2430 -
The 10 K are a gift. We bring 6 k after tax. Thank you for your help
0 -
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.com0 -
The 10 K are a gift. We bring 6 k after tax. Thank you for your help
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.0 -
In order to repay the leftover debts, we would like to get a loan.
This would not repay your debts, it would just shift them.My husband credit score is really good
Unless that assessment comes from a lender it is of little value.We bring 6 k after tax. Thank you for your help
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.0 -
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.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
-
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.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.
What is the point in doing that?0 -
That does not follow at all, it all depends on outgoings.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.
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.0 -
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 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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.4K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.5K Work, Benefits & Business
- 602.8K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards