Anyone know about borrowing money when you have bad credit history?

[thetank]

Stop gambling and your life gets better. Don't even buy a lottery ticket. Forget about poker as a hobby.

[sovietsong]

There are a number of ways forward IMO, if you are in financial difficulty most banks will want to arrange something for fear of you going bankrupt.  First and formost you need to complete a monthly budget, it needs to be 100% honest, including all debts that you have along with other living costs right down to toiletries and entertainment (not gambling related obv). 

Once you have done this you can either deal direct with your bank, if most of the debt is in one place they are likely to help but if you have it all over the shop each bank will try to get you to pay them the most.  The more sensible thing to do would be to contact one of the following Charities.  Whatever you do don't google them and click on the first link up as your likely to go to a fee paying company that will keep pushing IVA's which might not be the best option.

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

https://www.citizensadvice.org.uk/

The best one IMO is national debt line, they have all options available and don't actually administer the Debt Management Plans (DMP's) or IVA's (if this is the best option - don't rule it out, everybodies circumstances differ) or finally which hopefully wont be what they recommend bankruptcy.

There are some helpful responses on this thread and some links to moneysaving websites which are all well and good when you can 'borrow' your way out of it.  If you have a good credit rating you can go and get a loan somewhere pay everything off and reduce your outgoings however if you are past that the options provided by the charities above are the best way to go.

A debt management plan is probably the banks/your best option.  The reason I say its the banks best option is because you will not have to write any debt off so they wont completely fuck you over on your credit rating! 

A DMP is where you make an agreement based on your income and outgoings and pay a set amount to your creditors, the banks will normally freeze all interest and charges which means your balances reduce v.quickly but normally they will spread the cost.  Once you enter the agreement it is reviewed every 12 months of if your circumstances change.

Anyway I'm rambling on now and all I meant to say was call the national debt line they will give you some excellent free advice.

Best Wishes

sovietsong

PS

- if your outgoings are actually quite low and you are struggling to make payments due to £300 a month into poker or whatever I think you know what the answer is.

[doogan]

the loan company i put up will do a secured loan of upto 100k with people with ccj's,upto 4 missed mortgage payments in last year.

[keilan303]

Think I don't have enough equity in our property for a secured loan, value is 135, we put down 25k (including all fees) mortgage was for 114 and current balance is about 109 (after 3 years, nice 21k of interest!!!)...I take it we wouldn't get considered for a secured loan in this instance?

[byronkincaid]

could you get a payment holiday on the mortgage for a few months? used to be able to change to interest only to save a few quid but think they're putting a stop to that. have you rung them to see if they can do anything?

[thediceman]

You should really seek third party advice from a debt management company immediately. I recommend the CAB.

People have suggested you try and negotiate new arrangements with your creditors. Trying to do this yourself will be unsuccessful. The companies will just continue to make demands on the existing terms. It is only when you get a debt management company involved that they will start to discuss making any new agreement and freeze fees and interest.

You could approach your mortgage company about a holiday break but not many companies are that flexible in the current market. Again they tend to only open discussions once you have approached a debt management company and done an income and expenditure form.

Re: any suggestion of selling your property to clear your debts and renting one this sounds simplistic but the reality is this is probably not a realistic option once you consider the time scale involved in selling a property especially in a deflated market. Your also likely to lose tens of thousands if seeking a quick sale ie via auction. This option should be avoided at all costs especially if you have children. Creditors do have the option to seek court action against you and get a charge against your property ie they guarantee they will get their money if you subsequently sell your property, assuming that any profit is made on the sale.

Try and refinance but I doubt you will have much success with this unless you happen to find a company who will no doubt charge you accordingly for taking on a high risk customer.

Renegotiate your credit arrangements ASAP via a third party and your find your have additional monies that will allow you to reduce your debts. You may also find that credit agencies will make you offers to settle the debt for a reduced sum. They tend to start at 80% but can go down to 30% or even lower because all they do in the end is sell the debt on for as low as 10 to 15%.

But my biggest tip is stop gambling until you have paid of ALL your debts. After all you should only gamble with money you can afford to lose and for you at this point in time that is nothing.

[bhoywonder]

Move to Scotland...cheaper housing...get a trust deed...will freeze all debts...wipe out 80% of debts...pay the remaining over 3 years...and after a further 3 years u can apply to have your credit history improved...u won't have a credit card in your possesion for a long time...however u will be at peace...this must be killing u mentally....tell the wife everything....drop poker...possibly attend ga too....

[Girgy85]

the loan company i put up will do a secured loan of upto 100k with people with ccj's,upto 4 missed mortgage payments in last year.

Will they lend me £100k for a house?

I've got 2 bank accounts, one I use for my income which has a outstanding loan and all my direct debits going out of it. The other account I use to pay me a little wage into.

[keilan303]

Move to Scotland...cheaper housing...get a trust deed...will freeze all debts...wipe out 80% of debts...pay the remaining over 3 years...and after a further 3 years u can apply to have your credit history improved...u won't have a credit card in your possesion for a long time...however u will be at peace...this must be killing u mentally....tell the wife everything....drop poker...possibly attend ga too....

Location: Inverbervie  

[doogan]

the loan company i put up will do a secured loan of upto 100k with people with ccj's,upto 4 missed mortgage payments in last year.

Will they lend me £100k for a house?

I've got 2 bank accounts, one I use for my income which has a outstanding loan and all my direct debits going out of it. The other account I use to pay me a little wage into.

no as a securede loa is a 2nd charge , therefore you must have a motrgage on the property brfore they will lend