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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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Hi I need some debt consolidation advice please. I run my

Customer Question

Hi I need some debt consolidation advice please. I run my own ltd so income isn't an issue. Payments are met and I have never had any defaults.
I earn about 25k a year
CC
MBNA Owe £5,635 pay per month £157 APR 19%
Barclays owe £2,878 pay per month £77 APR 19%
Total on CC £8,513
Loans
HSBC Loan £9,466 pay per month £157 APR 10%
Total Debt Outgoing £391 PM Total Debts £17,979
My credit rate is about 830. The issue I have is because I am self employed I seem to get rejected for loans. My objective was to consolidate the CC's to one loan thus removing the high apr's and having a defined end date to debt. So the request for suggestions is not for bankruptey or iva's. The payments are being managed but I want to see if there is anything can be suggested for someone who is a director to get the CC's into a loan.
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

From what I understand from your question, your getting rejected for loans would be your debt to income ratio. I believe, your current income seems just sufficient to cover and service your existing debts.

Having said this, one reason I see banks refusing you loans would be that your debt to income ratio may no longer to favorable to issue / take on fresh debts.

Further to this, with the credit score of 830, there is no need to file bankrupcy as it can potentially ruin your credit. Further, you have not defaulted on any payments and so going for bankruptcy may not make sense at all.

One more thing. Converting CC into loan is not a good idea. By doing this, you will also end up paying interest on the amounts you are not using.

I would strongly suggest trying out professional Debt Consoidation Services. This is because, consolidating your current debt with lower than present APR is what you must concentrate your efforts on. Kindly try out the following sources and see if they help.

http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Debtconsolidation/Governmentdebtconsolidation.aspx

http://www.halifax.co.uk/loans/what-you-can-borrow-for/debt-consolidation/


I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question,

Warm Regards,
Rakhi Vasavada and other Finance Specialists are ready to help you
Customer: replied 2 years ago.

Thanks looking at the Halifax page seems you need to hold an account with them for there loans. Perhaps I open an account for 3 months then try with them

Customer: replied 2 years ago.

Thanks looking at the Halifax page seems you need to hold an account with them for there loans. Perhaps I open an account for 3 months then try with them

Expert:  Rakhi Vasavada replied 2 years ago.
Dear Russell,

Hello and welcome again. Thank you for your reply.

Yes, that would be a better idea to try out.

I wish you good luck.

Warm Regards