I am lying to everyone to get a loan!!!! Help

Dear Debt Doctor.. I think I am going to be struck down by lightning.  I am lying to everyone to get a loan to pay off my debts and keep getting declined and rejected.  Why?  I earn enough but I really spend too much and just do not get around to paying my credit cards in time.  So if I get one loan i can pay them off and then i can start controlling it. What should I do because I really want to be free of this monthly problem.  DM

Hello DM

I think you need to get yourself a credit report with your payment profiles and see exactly what you owe.  Look up free credit reports on google.
You will probably find that so many people have done credit checks on you that your score is kind of low.  That is a no no.  Stop looking for credit for at least 6 months immediately.  Then phone your credit card companies and ask them for a 2 month break.  During that period pay 1 of your cards double and the next month pay 1 and half times what you must pay.  Then start paying all your cards the minimum amount.  at the end of 3 months phone them all again and ask for another holiday payment period.  Then pay the same card extra until you finish paying it.  then you take out a scissors, cut it up and close that account.  Then address the next card.  When you are left with one card reduce the limit by 50% and o yes...behave yourself, that's the only way you will get out of this predicament - forget about another loan.

What impact will the new interest rates have on my debt?

Dear Debt Doctor: I owe about R 250,000 on my home loan and am in arrears for two months, will this be an advantage to me and how can I use this.  Annie VD

Cover your .......

Hello Annie,

Well firstly you need to get back on track quickly.  If you do not, by the third time you go into arrears you will be listed and your home loan will go to the legal department of the bank, and then you have a serious problem.

Secondly, if your loan is at prime (we will assume this as the same principle applies).  So your payments would have been R 250,000 bond at 10% = R 2,463.26 per month.  With the new rate at r 250,000 bond at 9.5% = R 2,380.36 and improvement of R 82.90 per month (or better still R 19,896.00 savings over 20 years).

So this is what you must do:

1. Phone your bank and explain that you are at fault and you want some assistance to put your account in order, take the persons name, number and record the date an time.

2. Ask for a payment holiday for the two months you are late and they MAY at THEIR DISCRETION add these two months onto the end of your mortgage period.
3. If they do not; make an arrangement to pay this off over the next few months and make an arrangement with them and get this recorded and in writing and keep track of this.  Make sure you pay this arrangement on time.

4. when you pay phone the person, let them know you have paid and thank them for their help.  this person is on your side and will help you always if you treat them with utmost respect.

5. With your new payment, do not adjust your payment to R 2,380.36 per month.  instead pay the old amount.
6.  You will clear your backlog quicker, be seen as an early payer and very quickly be in advance on your bank payments.

Then, if you need a months breather etc, call the Same person and make arrangement for non-payment for a month or so, because you have paid more- no sweat.

BUT, DO IT TODAY!!An apple a day keeps the debtors at bay!!

cheers the DEBT DOCTOR