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told I can't afford loan repayments......

30 replies

Simonandrod · 26/09/2025 16:43

I'm in the frustrating position of having a lot of credit card debt, that I can service - I have never missed a payment but I'm paying a lot of interest.
I applied for a loan to consolidate my debts with my bank that I've been with for 25 years and they turned me down on the affordability criteria. It is very frustrating because I'm paying out £1500 a month on cc payments, and the loan would have been £500 a month, I can easily afford it and they can see that in theory and the woman was very kind but computer said no.
I appreciate their reasons - ie there is no guarantee I won't do it again etc and not be able to service the loan, which rules me out.
I know I won't (I haven't run up any further debt in the last year, I have finally learnt and am living within my means and paying off the debts slowly, but it would definitely be better from the point of view of the sky high interest I'm paying on ccs for me to consolidate) however they don't trust me. Fair enough. But has anyone been in a similar position and found a company that will take them on under similar circumstances?

OP posts:
Jmaho · 27/09/2025 18:42

Don't rush into any plans like many have suggested it will seriously impact your credit history for years.
If you can afford to pay it off do it. Set a strict budget and have a period of living a basic life until its gone.

Simonandrod · 27/09/2025 19:11

Thank you all so much for your advice... it is hugely appreciated. Snowball method seems the overwhelming consensus so I will adopt that and report back.

OP posts:
MikeRafone · 28/09/2025 10:26

Glad you'll be using the snowball method

id also second going to the ombudsman pp stated and complaining - you should be able not get money from that and added to that your bank have evidenced that you can't afford the debt - its worth a try to get some money back.

You can simultaneously report each and every card and there are often template letters for stuff like this online to use. debtcamel.co.uk/refunds-catalogue-credit-card/

Spinningonthatdizzyedge · 28/09/2025 20:12

You can use the MSE credit card 'balance transfer eligibility calculator' to see if you'd be accepted for a 0% balance transfer credit card, allowing you to transfer debt with a high APR to 0% (enabling you to pay the debt off quicker, and reducing the overall cost).

It might not be possible as you have a lot of debt and affordability has been flagged already by your bank, but it could be worth checking, especially as the calculator uses a 'soft search' which shouldn't affect your credit score: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

If not, try again in a few months. Good luck!

Bjorkdidit · 29/09/2025 05:13

Simonandrod · 27/09/2025 19:11

Thank you all so much for your advice... it is hugely appreciated. Snowball method seems the overwhelming consensus so I will adopt that and report back.

Traditionally in the UK, the snowball method is used to mean starting with the most expensive debt and concentrating on paying that off fastest, while only paying the minimums on cheaper debt, although some people are using the US description which starts with the smallest debt. If you start with the highest interest rate, it will get you out of debt faster, although psychologically it can feel like you're getting somewhere and simplify admin if you pay off any smaller debts so say if you owe £8000, £5000, £4000, £400 and £150 you could pay off the two smaller ones first, then concentrate on the other three.

To add to the above, if you have any empty cards, see if they will accept you for a balance transfer offer - these are often easier to get if you already have an account.

For any interest charging debt, pay £1 more than the minimum. Either have it on DD for the minimum payment and manually make a payment of £1 each month, or you could pay it off by a standing order for the current minimum, which will be higher than the actual minimum when the balance reduces. This removes the minimum payment marker from your account, which makes you look better to lenders.

If you do get any low interest offers, just pay the minimum plus £1, while the debt is cheap. You can likely transfer it to another offer if you still owe money when the offer runs out.

Use an eligibility calculator to look for offers you might be accepted for and even if the chance is low, apply. If you're rejected,repeat the process every 6 months, as you might be accepted in future, especially as your debt reduces and if you build up a history of paying more than the minimum.

Review the rest of your finances to reduce bills and unnecessary spending, cancel unused subscriptions, see if you can earn or make extra money etc, to get out of debt faster.

For the mortgage, you can probably get a new deal from your existing lender without a credit check, so should be OK for that.

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