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

[keilan303]

Thanks for all replies. Yes am aware of most the debt free resources out there having been there 5 years ago...Im very bad with organisational skills and forward planning, thinking of bigger picture etc...the situation just now is where the money comes in and goes out straight away and I borrow straight away from payday loan companies to last me the month...so I can lose anything from 1-200 a month just on interest alone as these companies need paid back the full amount each month. My overdraft constantly goes over and I am charged £150 per month from my bank for being overdrawn, 3 credit cards at 250 250 100, one of the pay day loans I missed the payment of due to a big cock up I had recently where I had to pay up front for hotels for work so the pay day loan was delayed by a month, cost me £700 to pay a £400 loan the APR was something like 2940%, the APR on my CC's are pretty high aswell, maybe 30% so I deff need to get this shifted elsewhere...a consolidated loan itself would be around the 350 mark a month which is much more manageable and if it could be a direct debit would be paid off each month before I know about it...my mortgage is currently 750 but it is going to come down after the new year to 500 odd but my goal would be to be paying 350 on debt and then continue to pay my mortgage at 750 or even more so we can get that cleared quicker, only had it 3 years so far so the more we can pay just now the sooner we should expect to have it paid off....just turned 28 here, but kids of 10 and 7, those buggers arent cheap! Its so frustrating, glad one or two of you can see my point in why a loan would be the best option here...i have been off work a few months with depression aswell so not really been getting my usual wage, trying to sort this out by just paying it is just going to drive my confidence down more and balls up our xmas....uuurrgghh sick life....

[Hairydude]

after reading your last post mate you should get yourself to your Local Citizens advice Bureau- they will lay everything out on the table and give you advise on best how to proceed, explaining all your avenues

[Lucky]

I have no experience of them but a colleague is working his way out of a similar hole with an IVA.  From what I understand, its an arrangement where your debts are frozen, interest stops accruing and you pay off what you can afford, in monthly instalments over 5 years. After 5 years the rest is written off.  May be worth looking into.

Try Googling for  "IVA"  or "Individual Voluntary Arrangement"

[StuartHopkin]

So your not working either?

I think you need to talk to someone about an IVA, before you lose your house.

[keilan303]

I am still employed...I am on sick leave until 17th this month...

I dont think IVA's are available in Scotland, its a different thing called a trust deed, my mum actually went through this recently, but she didnt own her house so i dont know if it affects your mortgage or not....they also dont provide you with cash which i am depserate for for home repair / central heating oil / car repair / xmas .....

[DaveShoelace]

+1 on the IVA.

My missus was in a ridic amount of debt when I met her and she when to a free debt management company, I'll get the details when she gets back later today for you. She had all her debts frozen, got some of her monthly payments reduced, in some instances was able to negotiate a lower settlement fee with lenders and whenever any of them would give her any shit, the debt management company stepped in for her.

Cant remember the figures but I think she had about 7k outstanding and shaved maybe £1k off with their help.

will get details for ya asap

[StuartHopkin]

I have no experience of them but a colleague is working his way out of a similar hole with an IVA.  From what I understand, its an arrangement where your debts are frozen, interest stops accruing and you pay off what you can afford, in monthly instalments over 5 years. After 5 years the rest is written off.  May be worth looking into.

Try Googling for  "IVA"  or "Individual Voluntary Arrangement"

Beat me to it.

I also know someone who has one of these. You dont need to pay one of the 'IVA Companies' to do this for you either.

You basically write to each company and inform that there is no way you will be able to service the outstanding debt you have with them.
You need to show your financial situation to them in detail and make a proposal to them.

I believe an average proposal would be that there is no interest added, and you will repay circa £10 a month for 5 years.

Your basically saying accept my offer to pay you this, or I'm going to declare myself bankrupt and you will get nothing.

[DaveShoelace]

Ignore me, she didn't get an iva, got my facts twisted

[Jon MW]

after reading your last post mate you should get yourself to your Local Citizens advice Bureau- they will lay everything out on the table and give you advise on best how to proceed, explaining all your avenues

yeah this, they have all the same information that Debt Management companies have - but they don't charge for it, and they're more influential.

At the moment you've got a bad credit risk score - because you're a bad credit risk, if you give all the details to someone personally they're going to come to the same conclusion as a computer doing it automatically would do.

The CAB can help with the ideas people have already mentioned and they'll know of any other ways which will be even more appropriate.

[DaveShoelace]

Ok, she didnt get an IVA, my mistake. She used these guys who were free as a debt management company:

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

[EvilPie]

Personally I'd rather sell my house than get an IVA. You think it's tough getting a loan now? Wait 'til you've got an IVA against your name. You won't even be able to get a phone on contract.

If there's enough equity in your house to clear your debts then just do that and start again in rented accommodation.

It sounds like the interest you're paying is crippling and it's only going to get worse.

Can you borrow against your house? Any chance of a re-mortgage with some cash left over to pay off your loans.

It might be worth talking to a bank about re-mortgaging with debt consolidation included.

Whatever you do you need to do it fast and quit all forms of gambling 100% or you'll fuck your whole life up. If you were older I'd probably think differently. You're still young enough to get going again though and if everything you've got is in your house then that's the thing to use to try to get out.

[doogan]

whats the value of your house?

and whats the mortgage balance on it?
 
try giving these a call, phatomch and myself where both in the secured loan game, you will pay somewhere around 13% but they can spread that over anytrhing upto 30 years or until you are 80. It sounds a high interest rate and it is compared to a mortgage but, it has no early repayment clauses so you can get yourself out of trouble and then remortgage in a few years time on a (normal mortgage rate).

Dependant on you property type they will go upto 75-80% ltv  (loan to value)  so if your prop is worth 100k and mortgage is 50k they will lend between 25-30k.

http://www.blemaingroup.co.uk/blemainfinance.html

[doogan]

Personally I'd rather sell my house than get an IVA. You think it's tough getting a loan now? Wait 'til you've got an IVA against your name. You won't even be able to get a phone on contract.

If there's enough equity in your house to clear your debts then just do that and start again in rented accommodation.

It sounds like the interest you're paying is crippling and it's only going to get worse.

Can you borrow against your house? Any chance of a re-mortgage with some cash left over to pay off your loans.

It might be worth talking to a bank about re-mortgaging with debt consolidation included.

Whatever you do you need to do it fast and quit all forms of gambling 100% or you'll fuck your whole life up. If you were older I'd probably think differently. You're still young enough to get going again though and if everything you've got is in your house then that's the thing to use to try to get out.

banks wont touch at the moment due to the historic bad credit. Unless he has a major low ltv. And the only company doing un-secured loans is Blackhorse and they are very picky over who they will lend to.

[EvilPie]

13% isn't that bad really as long as he can clear everything with it and then focus 100% on paying off that 15k.

Keilan. Have you told your Mrs about all this particularly the spewing chunks on gambling?

She needs to know so that she can help make sure you don't do it again.

[taximan007]

Probably have read this wrong but you say you take home 1900 per month and your partner takes home over 1000, you pay £150 for being overdrawn and you pay £600 to credit card companies, so that leaves 2150 per month? Obviously you have other living expenses but I know alot of people that would like this amount coming in every month.

Can you not agree a lower monthly payment figure with the credit card companies? Close your Poker accounts from what you say that will save you £500 a month straight away. You say you have a gambling problem have you contacted any groups? Gamblers Anon or any others.

Actually I think i just said what Red advised only he puts it better.

Good luck with whatever route you take