ENQUIRY FORM







Best time to call

Amount of debt

Employment Status

Are you a home owner?
Yes | No

Other Info

We will get back to you soon!

Refused Loans to Clear Debt

If you have been refused a loan, your debt problems may well be leading you may need to take debt advice. in the UK there are several solutions to just borrowing more money and getting yourself deeper in debt such as:

IVA (Individual Voluntary Arrangement) to clear debt

If you have enough money left over after paying your priority creditors and essential expenses, you may be able to arrange an Individual Voluntary Arrangement (IVA).

 

An IVA is a legal agreement with creditors (usually non-priority creditors) to repay your debts. This could either be in part or in full. The arrangement is negotiated, written up and checked regularly by an independent solicitor or accountant called an Insolvency Practitioner. Not all the creditors have to agree to an IVA as long as the creditors to whom you owe 75% of your debt agree.

Debt Managment Plan to clear debt

If you have enough money left over after paying your priority creditors and essential expenses, you may be able to arrange a debt management plan.

 

A debt management plan is an arrangement with your creditors to pay back the debt by regular instalments. Instead of you speaking to your creditors yourself to arrange the plan, a Debt Management Company (DMC) does it for you. Usually you have to pay for this service although there are some DMCs who will do this for free.

Bankruptcy to clear debt

If you have a debt problem, you might have a number of options for sorting it out. One of these might be bankruptcy.
Bankruptcy is a court order that you can apply for if you are in debt. Once you have been made bankrupt, you don't have to deal with the people you owe money to (your creditors). An official called the Official Receiver takes control of your money and property, and deals with your creditors.
Remember, bankruptcy might not be your only option and it might not be the best one for you.
Remember also that someone you owe money to could make you bankrupt even if you don't want this.

Protected Trust Deed to clear debt in Scotland

A trust deed is a formal arrangement with your creditors, used in Scotland where a debtor grants a deed in favour of the trustee which transfers their assets to
the trustee for the benefit of creditors.

Provided certain conditions are met, the Trust Deed may be registered as "protected", thereby preventing creditors from petitioning for the debtor's sequestration or taking any other steps to recover debts due to them. Financial and personal circumstances vary, so the consequences of signing a Trust Deed will be different for each individual or partnership.

Remortgage to clear debt

If you have enough money left over after paying your priority creditors and your essential expenses, you could think about taking out a loan to pay off your non-priority debts. This is called a consolidation loan. You can use a consolidation loan to pay off things like credit card debts and loans.

 

We understand how you may be feeling right now. Do you dread opening your mail? Have you been refused an overdraft? Have you been refused a loan?  If so please call 0800 074 6918

What to do if you've been refused a loans to clear debt

If you've been refused a loans to clear debt or credit, or you're worried that you might be, you can check the information that's kept about you. If it's wrong you can ask for it to be corrected. If the information is correct and you're worried about your debts you can get free help.

How lenders decide who to lend to

When you apply for a loan or credit, lenders want to know that you're going to be able to repay any money they lend you. The two key ways they usually assess this are:

  • work out your 'credit score' by asking you a series of questions
  • check your 'credit history' with a credit reference agency


Credit scoring if you have been refused loans to clear debt


To work out your credit score lenders ask you for details of:

  • your income
  • your expenses
  • major things you own - like your home
  • any other loans you've got

They give points for each of your answers. If you don't score enough points, they may:

  •  offer to lend you a smaller amount
  • charge you a higher rate of interest
  • Refuse to give you a loan

 A lender won't usually tell you why they've refused you a loan but they may give you a general idea if you ask them.

Can you ask them to reconsider if you have been refused loans to clear debt?


You can ask them to reconsider if:

  • they made their decision just using a computerised credit scoring system
  • you've got information that might make them change their mind


Applying to different lenders to get loans to clear debt


Lenders score customers in different ways, so you can try again with another lender. But bear in mind that each application will be noted on your credit file kept by credit reference agencies. Too many refused applications will have a negative effect on your credit history.


Credit reference agencies

Credit reference agencies hold information (called a 'credit history') on most adults in the UK. This information helps lenders assess the risk of lending to particular people, and reduce the risk of fraud. The main agencies are Experian, Equifax and Callcredit.

To put together your credit history the credit reference agencies get information from several sources, including:

  • the electoral register
  • County Court judgements
  • bankruptcy orders
  • other lenders - to check that you've kept up to date with other loan repayments
  • details of house repossessions


Your right to check your credit file if you have been refused loans to clear debt


You can't stop lenders checking your credit file, but the law says you can see what's on it. You'll have to pay, but credit reference agencies can't charge more than £2 for this. You may also be able to see your file online, but this may cost more.

Refused loan * free debt advice * debt solutions * refused a loan due to bankruptcy * IVA * Trust Deed * debt problems * solutions * advice * individual voluntary arrangement * debt consolidation

 

 
 

Avon Bedfordshire Berkshire Borders Buckinghamshire Cambridgeshire Central Cheshire Cleveland Clwyd Cornwall County Antrim County Armagh County Down County Fermanagh County Londonderry County Tyrone Cumbria Derbyshire Devon Dorset Dumfries and Galloway Durham Dyfed East Sussex Essex Fife Gloucestershire