Personal Loan and Working for a Bank

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Post First Anniversary Combo Breaker
    8% on 20k. I took the same out with sainburys at 3.8%. I also went to my bank 1st they wanted to charge me 6.7%!! Banks are rip off for loans. As they say above, i was once in debt and keep getting loan to consolidate. 4 times i did it went from 9k to 16k. I does not work. Paying of as much as you can and reduce household bills etc helps i am now debt free for 3 years and never been so happy. It now easier to walk away from buying things you dont really need/
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Oh dear, please don't consolidate again !!

    It does not work, stop the rot now and get some debt management advice.

    Otherwise you will be back here in 12 months 40k in debt asking the same questions.

    Stepchange can help you manage your existing debt, and advise on how to get interest stopped.

    That should be your mindset now, not more borrowing.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Brock_and_Roll
    Brock_and_Roll Posts: 1,207 Forumite
    First Anniversary First Post
    Hang on a second here......


    The OP works for a bank. Almost certainly bankruptcy, IVA, even defaulting on debts may well be a breach of terms of employment.


    I looks like the OPs record was clear when they joined and as any defaults have happened subsequently they have not found out.


    Surely there is a big risk that in attempting to take out a loan with your employer, they will look a the credit file with potentially serious consequences.


    So aside from the fact that consolidation is highly unlikely to be the best option, in this case using a staff loan might be a very bad idea.


    Far better to get a few shifts in the pub etc and snowball the debts.
  • pinkness86
    pinkness86 Posts: 5 Forumite
    PeacefulWaters wrote: »
    It's only an issue if your preferential rate is below 3.5%.

    I got told today by branch staff that the loan would be 3.3% for staff. Why is that an issue?

    I have never been offered a loan with such a low interest rate so the monthly payment would be very manageable for me. I have learnt my lesson and i know people say that but i know i will never be in a position like this ever again, i wouldn't wish it on my worst enemy.

    If the loan gets declined then i will have to look at getting some debt help. I think i would be ok with a debt management plan but not an IVA as i could risk losing my job.

    Thanks for all your help everyone. I appreciate you saying not to get into more debt but as it's a very low rate and it's with my bank and my employer i won't want to mess it up if i get accepted. I will check with all the credit reference agencies before i apply to make sure all the information is correct.
  • retepetsir
    retepetsir Posts: 1,236 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Don't do it. Have you completed an SOA?

    The Great Declutter Challenge - £876 :)
  • meer53
    meer53 Posts: 10,217 Forumite
    First Post First Anniversary Combo Breaker
    I work for a bank, IVA/DMP is OK where i work but Bankruptcy means losing your job. From experience i would say you will be declined for a staff loan, consolidation is not normally offered unless it's to pay off debt owed to your employer where they can guarantee that you'll use the loan to repay and not spend it all again. They might offer a loan at a much higher interest rate but you'll need to have a conversation with them first.
  • Chloe_L
    Chloe_L Posts: 17 Forumite
    pinkness86 wrote: »
    I got told today by branch staff that the loan would be 3.3% for staff. Why is that an issue?

    I have never been offered a loan with such a low interest rate so the monthly payment would be very manageable for me. I have learnt my lesson and i know people say that but i know i will never be in a position like this ever again, i wouldn't wish it on my worst enemy.

    If the loan gets declined then i will have to look at getting some debt help. I think i would be ok with a debt management plan but not an IVA as i could risk losing my job.

    Thanks for all your help everyone. I appreciate you saying not to get into more debt but as it's a very low rate and it's with my bank and my employer i won't want to mess it up if i get accepted. I will check with all the credit reference agencies before i apply to make sure all the information is correct.

    My understanding is if it's below the HMRC rate (as someone else pointed out to be 3.5%) then you will have benefit in kind implications, which means a slight reduction to your take home pay.
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