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    • Caramel88
    • By Caramel88 16th May 17, 11:21 AM
    • 1Posts
    • 1Thanks
    Caramel88
    Car insurance - annually or monthly payments
    • #1
    • 16th May 17, 11:21 AM
    Car insurance - annually or monthly payments 16th May 17 at 11:21 AM
    Hi everyone,

    I've never posted on here before but my husband and I are struggling financially.

    We have £5000 on a credit card and a £950 overdraft. I want this debt gone and am prepared to sacrifice as much as possible to get there.

    We are due to pay our car insurance soon which we normally do annually. We don't have much available funds on our credit card so to pay annually will be doable but very difficult. To pay monthly will cost more due to the interest charged by the insurance company. If we pay on the credit card, we'll be charged interest though anyway. We do not have a quote yet from our insurer. Would I be stupid to pay monthly or would that be a sensible option? We don't want to apply for another credit card on 0% as we were declined for another card recently and don't want to further damage our credit file.

    Really appreciate any input. Thank you.
Page 1
    • anna_1977
    • By anna_1977 16th May 17, 11:36 AM
    • 562 Posts
    • 768 Thanks
    anna_1977
    • #2
    • 16th May 17, 11:36 AM
    • #2
    • 16th May 17, 11:36 AM
    have you looked for an insurance company that doesn't charge interest - I think Nationwide is one of them
    • Puddylove
    • By Puddylove 16th May 17, 2:01 PM
    • 376 Posts
    • 605 Thanks
    Puddylove
    • #3
    • 16th May 17, 2:01 PM
    • #3
    • 16th May 17, 2:01 PM
    If you pay monthly, doesn't it count as a loan from the insurance company, needing a credit search on your file anyway?
    • leanne12345
    • By leanne12345 16th May 17, 2:43 PM
    • 43 Posts
    • 23 Thanks
    leanne12345
    • #4
    • 16th May 17, 2:43 PM
    • #4
    • 16th May 17, 2:43 PM
    If you pay monthly, doesn't it count as a loan from the insurance company, needing a credit search on your file anyway?
    Originally posted by Puddylove
    We just changed car insurance providers and no credit search was done. I guess because if you don't pay they just stop insuring you, it's not like a loan where they have money to recoup.
    • anna_1977
    • By anna_1977 16th May 17, 3:33 PM
    • 562 Posts
    • 768 Thanks
    anna_1977
    • #5
    • 16th May 17, 3:33 PM
    • #5
    • 16th May 17, 3:33 PM
    If you pay monthly, doesn't it count as a loan from the insurance company, needing a credit search on your file anyway?
    Originally posted by Puddylove
    I've not been credit checked for car insurance, a search will show up on your credit file but that is it.
    • EssexHebridean
    • By EssexHebridean 17th May 17, 10:18 AM
    • 7,316 Posts
    • 38,598 Thanks
    EssexHebridean
    • #6
    • 17th May 17, 10:18 AM
    • #6
    • 17th May 17, 10:18 AM
    If you're looking at needing to use a card to pay for things like car insurance, then you need to revamp your budget by the sounds of it. Can you embark on a mad spree of ebaying etc to raise the funds for this year's premium upfront, and then start to set aside 1/12th of that figure (plus 10% to allow for increases) monthly so you know it's there when it comes along next year?

    I'd suggest you need to look at putting together your SOA (Statement of Affairs - link at the top of the board in the "sticky" thread) and coming up with a budget that works.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£373.02
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