CC, loan - new car?!?

TFD_2

loftty wrote: »

Good point. But if I can get away with paying less interest surely that can only be a good thing.
I think I'm just looking for reassurance really, to make sure what I'm thinking is the right thing to do.
I hate being in debt-who doesn't?-but its a necessary evil!

Yeah definitely if you can pay for some of the car via 0% card it would save money (assuming it is a card that allows you to transfer the cash to a current account). Just bear in mind if you haven't cleared the balance when the offer ends, you will need to find another card to transfer this onto, or maybe then look at extending the loan.

YorkshireBoy

It seems to me like you might be falling into the classic trap...consolidate your debts into a loan and then start again. Except this time you've 50% more debt than you started with...just one or two short months ago.

Yes, you'll have a newer car...but newer cars break down as well.

And (if it was directed at me, TFD) I'm not being self-righteous, just trying to sound the warning bells.


EDIT: Post your question on the debt-free wannabe board, and take some advice on there as well.

Good luck. I hope everything works out for you.

jonesMUFCforever

loftty wrote: »

Purpose was to consolidate previous debts here and there ito one place as I was trying to get finances sorted because we wanted to start a family. But our car has nearly given up,it wouldn't start the other morning and having a baby we need something that is reliable.

The old loan was to consolidate debt - didn't last long did it?
TFD may think me self righteous - I think its a pretty stupid idea to be honest to be increasing your debt at this time.
Won't your income reduce after you have had the baby?

TFD_2

YorkshireBoy wrote: »

And (if it was directed at me, TFD) I'm not being self-righteous, just trying to sound the warning bells.

I've just seen various comments made on this site, with people being told off for spending money! Or people feeling they have to apologise for spending money.

I don't see debt as a problem if it is managed, affordable, and ideally you have something to show for it! I understand that some people feel differently, I just don't see anybody should have to justify spending £3000 on a car - which let's face it is hardly extravagant!

Caroline73_2

If your husband is paying it - he should get the loan or CC.

YorkshireBoy

TFD wrote: »

I don't see debt as a problem if it is managed, affordable, and ideally you have something to show for it!

A depreciating asset you mean?

OP has just consolidated over £6,000 of debt...1-2 months ago
OP is expecting a baby
Babies are expensive!
OP may have to give up work soon = lost income
We're in a deep recession...and for a long time
1000's are being made redundant weekly
Does OP have any 'tide me over' savings?

I just don't see anybody should have to justify spending £3000 on a car

Not to us, I agree...but to themselves?

let's face it is hardly extravagant!

Depends on your circumstances. The OP's are listed above.

TFD_2

But surely the OP knows the facts better than you or me? We don't know what her husband earns for example.

A car is a depreciating asset, but luckily a loan is a depreciating credit facility. If bought wisely, the loan should be paid off quicker than a car depreciates.

TFD_2

And TBH £3K seems like a sensible amount to spend on a car - you can pick something reliable and relatively safe for that. Spending much less than that can be false economy, and also less of a safe environment for a little un.

loftty_2

Thanx 4 all your help and comments. I will carefully take into consideration all of the advice and come to a decision from there.

Inactive

loftty wrote: »

Thanx 4 all your help and comments. I will carefully take into consideration all of the advice and come to a decision from there.

As you have only thanked those that told you what you want to hear, it seems that your mind was made up anyway.

I hope that it works out for you, however I share YorkshireBoy's concerns, and I would take notice of what he has advised.