taking a loan

miseter

hi people i am currently saving for a car and i am saving in my local credit union.. u have to save some money before getting a loan which i plan to do. i currently have about a grand saved and am going to take a loan for about £2000 to buy a half decent car. the payments are very easy u just pay back how much u want when ever u want but u cant leave it too long without making payments. i thought this would be good around christmas when im low in cash and can pay a few pounbds back just. is this a good idea ?????

Rafter

A flexible loan is a great idea if you have irregular income or big bills around christmas etc.

However, be very careful you don't end up with a loan which is much higher than the value of the car.

If you are borrowing £2000 and realistically the car is only going to last 2 years then you must make sure you are repaying about £83 a month on top of any interest.

Make sure you are ready for all the other expenses associated with a car too - insurance, fuel, tax, tyres and repairs - they are expensive!!!!

R.