Loan Advice with bad credit

Blakey1982

HI All

I am currently in a relationship but we are breaking up. The one thing that i am worried about is she got a loan for both of us - i used my share for a car and her's was debt consolidation - it is all in her name as i have had finance issues in the past.

The loan from my side has about 20 months left at £300 a month.

When i move out i am not going to be able to afford to rent somewhere and pay the loan of that amount - my choices are either share accomodation with someone for as long as possible, get a loan in my name and spread the term out or try and earn extra money to pay for the loan and rent but also hold down existing job.

My questions:

Do you think me applying for a loan over say 5 years to lower the payment is a good idea? (i have a credit rating of 616 out of 1000. This was 416 in April 07)

Any other ways you think I could help myself out bearing in mind i dont really want to live with someone?

CLAPTON

you don't give your age/salary/expenses etc but....

i would suggest

get a part time job to increase your income
flat share to reduce your costs to a minimum
continue to pay the loan at the current rate
save as much as possible so you never never ever 'need' to borrow money especially for a depreciating car (except for a mortgage of course)

and in 20 months you will be in good financial standing

Blakey1982

Sorry - pretty rubbish message on my part haha

I am 26, living in Newport south wales, earn £22k per annum

Expenses are currently (monthly):
Rent - 250
Car ins - 45
Mobile - 40
Internet - 18
petrol - 150
Loan - 300
Food - 100
Pension - 35
ISA - 25
Total - £963 (take home is around £1403)

So if i was renting alone there would be no way - not with the £300 loan.

On the part time job - What is the situation with tax - i was of the understanding you would get murdered for tax making it hardly worth while?

CLAPTON

1. well if you are offered say 500 per month more with your current employer would you turn it down because you will be murdered with tax?

ok you pay 20% tax on all you earning over £6035 whether with a new employer or your old one.


2. you seem to have a surplus after all spending(including loan) of over £400 ..is that right.. are you currently saving over 400 per month?

Blakey1982

Thanks for reply Clapton

I currently have about 400 left after the bills mentioned above but if i was living alone the Rent would be around £500 - bills such as Electric, gas, water and council tax would probably equate to £100 per month.

I will definately look into the part time job though - anything to earn more and not spend would be great