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    • lawero1
    • By lawero1 5th Aug 18, 1:39 PM
    • 10Posts
    • 2Thanks
    How the flip are you meant to get a debt consolidation loan if your declined because your debt high!
    • #1
    • 5th Aug 18, 1:39 PM
    How the flip are you meant to get a debt consolidation loan if your declined because your debt high! 5th Aug 18 at 1:39 PM
    It's so frustrating.

    I have 31,500 I would like to refinance as it's now on 25% interest rate (mostly credit cards). I was swapping it around, but can no longer do that.

    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.

    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.

    It seems my only option is go to a debt consolidation agency/charity. But I don't want to do this. I want to pay my way. I don't mind paying the interest. And I imagine having arrangements with creditors would kill my credit score.

    So what is a guy left to do???
Page 3
    • Tarambor
    • By Tarambor 6th Aug 18, 2:35 PM
    • 3,381 Posts
    • 2,475 Thanks
    I appreciate you trying to help.

    But this "mess!" I am in was planned.
    Originally posted by lawero1
    No it wasn't because if it was you'd not now be posting on here because you have been declined for debt consolidation. You got it in your head you could just continue to balance transfer and consolidate ad infinitum and the wheels have come off that plan and now you realise just how much you're going to end up repaying.

    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.
    Except it wouldn't be 15 would it at 25% APR making minimum payments? And you've finally figured out just how much 25% APR on 31,500 is going to be. It is going to be around 7500 this year and several grand per year for the next four or five.
    Last edited by Tarambor; 06-08-2018 at 2:37 PM.
    • Thrugelmir
    • By Thrugelmir 6th Aug 18, 6:01 PM
    • 59,480 Posts
    • 52,798 Thanks
    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.
    Originally posted by lawero1
    People generally don't though. That's the statistical fact that commercial lending is based on. The interest rates on offer group you with everyone else in the same borrowing category. Defaults have to be paid for.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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