debt consolidation question

C

caffeinated

Guest
First time poster.. please don't bite

Would anyone out there be able to advise on a possible route to borrowing/consolidating some debt, given in mind the current banking system state.

I currently have a CC with just under 7k on it - possibly one of the worst ones to have i.e. standard ulsterbank CC. (This resulted from a number of unexpected and consequetive big bills that I had to clear - accountant bills, legal fees, etc - which resulted in having to use the CC to deal with other bills car insurance, car tax, groceries etc.) The bills had hit all at the same time, so I'd no other option at short notice but to use the CC. Especially as the whole banking system seemed to go down the pan at the time the bills started to land.

I'm quite ashamed of the level the CC has got to, so I've been trying put everything I can afford (around 400 a month) into trying to clear the CC debt.

At the time of the inital whack of bills that landed, I did try going direct to my bank, Ulsterbank, and applied for a loan for 10k (at the time I had the accountant, legal and CC bill which came close to the 10k). I was told the loan was declined, but they would not give a reason for it over the phone. Two months later I've yet to get any written reason in the post (which I find amazing considering that when they post out marketing material or the credit card bill they can get that to me everytime).

I don't have any other major loans with the exception of joint account mortgage (with my otherhalf) and a couple of hundred euro left on a credit union loan. I've no car loan, thank god, and I've recently received a credit report from the ICB which show's that I've a near perfect credit rating. I dont have much in savings, having only recently completed a lot of work on my house. The house work pretty much gobbled up what I had.

Would anyone be able to suggest a lender that would provide an unsecured loan to clear the CC debt of 7k? My fear primarily is going to too many lenders asking for a loan, I don't want to see loads of hits on my credit report (that's bad isn't it?)

** edit ** - I should point out that I no longer use the CC for anything. I've quite simply had to adjust all my spending to spend as little as possible, and pay as much as I can per month off the CC. Esentially I'm looking for a loan provider so I can get off the crucifying 17.9% interest rate, with the hope of using the savings on interest paid to clear more off the loan

Any suggestions would be much appreciated, many thanks for your time and assistance.
 
Have you tried a balance transfer some or all of the credit card debt?
As you are already a CU customer, have you tried approaching them?
From posts I have read here recently, Halifax seem to be willing to consolidate debts of those in need-I stress the word 'seem' as this appears to be offered 'over the phone' and so may not have been subject to the full underwriting process.

If UB wouldn't give you a reason over the phone, have you considered making an appointment with someone in your local branch?


Have you asked UB to reduce their cc rate so that you can tackle the balance outstanding?

caffeinated said:
I'm quite ashamed of the level the CC has got to, so I've been trying put everything I can afford (around 400 a month) into trying to clear the CC debt.
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I don't see any reason to be ashamed-you had bills and needed to pay them. Maybe it was bad planning, perhaps bad luck, but as you will see there are plenty of others who come to this site with similar issues.

caffeinated said:
My fear primarily is going to too many lenders asking for a loan, I don't want to see loads of hits on my credit report (that's bad isn't it?)
Click to expand...

It counts as a negative, but it won't be weighted as highly as, say, falling into arrears etc.

All the best.
 
Many thanks for the reply CCOVICH.
I guess I ruled out the CU, I assumed that they worked off a 2.5 multiplier on their loans, and wouldn't have much in shares in my local CU.
I'm going to press the branch bank manager for some information on why the loan was refused. I didn't consider asking them about reducing the rate, to be honest. I might also try halifax to see if they can provide a loan over a 1-2 year period.

thanks again
 
caffeinated said:
I guess I ruled out the CU, I assumed that they worked off a 2.5 multiplier on their loans, and wouldn't have much in shares in my local CU.
Click to expand...

You could be right on that score, I wouldn't be overly familiar with the policies of every CU, but no harm in asking.
 
To be honest, finding out why they turned you down isnt going to help and I dont actually think they have to tell you. The clue might be in your 'near perfect' ICB. From my experience of UB the ICB has to be 'perfect' and your statements must be, no referral charges etc. I do think the best option if you can is to transfer it another credit card where you can interest free for a while and chip away at it that way. It is very hard to borrow now to clear credit card debt.
 
the credit union dont work like that anymore, and i would say thats your best bet, but dont say your borrowing to pay off your credit card, they dont do that, say its for a new kitchen or something
 
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