Will telling the bank everything work for us or against

[yellowflowers]

We have about 15k debt on credit cards and overdrafts. Our combined post tax income each month is about £3200. Our mortgage and bill is £2000 then the remaining money goes on paying back debt, everyday life and food etc. I'm not complaining - we are in a good position.

But credit cards and overdrafts are a ridiculous way to have debt and we really want a consolidation loan. We were turned down for loans last year despite me doing a credit rating check and it being ok.

If I tell the bank all this might they help? Do they have the discretion to look at whole picture rather than just fill out a form?

Ideally we need 15k loan to pay off all debts bf overdrafts and could afford to repay £300 a month.

I don't understand what you're asking. If you are applying for a debt consolidation loan you'll need to tell them because it'll come up on the credit report any way. If you don't tell them they'll see you asking for £15k, see you have £15k of debt and decide you can't afford the payments for £30k of debt.

So tell them. Because they'll know any way.

No I mean we applied for loan last ear and was turned down so rather than just apply again should I just spell out out finances to them and ask them for help and see what they suggest?

Well even if someone at the bank suggests a loan they won't underwrite it so you may as well just say you want a loan.

Have you missed any payments? Even missing one or being late can count against you heavily in terms of rate and acceptance.

I don't think there should be any downside to asking your bank for a meeting to review your finances. They usually encourage such meetings as it's an opportunity to sell their customers more products! If you tell them you wish to talk about consolidation and take along the documentation, summarised etc., then an advisor should be able to tell you whether they can offer you a consolidation loan. I suspect you were turned down originally because if you are £15,000 already in debt the loan application would look like you were trying to borrow another £15,000 on top.

Your own bank, of course, is not the only way to take out a consolidation loan. Other banks may offer better products at better rates. You may be able to transfer your CC debts to a 0% card, for example. Have you considered talking to CAB or one of the other free debt advisory services?

Totally agree with Cog If your bank can't, or won't help try speaking with CCCS too.

If you do get one cut up the credit cards else you will end up with even more debt.

Yea I was going to say CCCS, you might, get the interest stopped also

I have learned my lesson about cards, Im still repaying my debts, but now cash is the only king in our house, okay sometimes its a squeeze or your skint, but, at least what you have is paid for and no one can take it away from you. Also its much more fum having a bundle of notes than a pile of plastic to play with. Give it a try guys, really try to do without your cards and see how you go on.

I was in a similar situation. My bank were really helpful and nice and I did get a loan, although DP (who has no debts) had to cosign it. I had a windfall last year and managed to pay a chunk of it off. Be prepared, fill out a spreadsheet showing it all. If you have good salary income it might be ok. Good luck.

When assessing lending (credit), one of the key factors banks look at is the person (people), who they are and their perceived integrity. This is not to make a moral judgement, but in order to assess the level of risk. If you don't tell them all, they will rate you less highly and you are less likely to get anymore credit. Additionally the bank will price the loan more expensively if they see it as higher risk.

Might not feel fair to you, but that's how the industry works!

Good Luck.