Bad loan advice- please help

be27

Hi all,

Please see my statement of affairs below. I was told by my bank Natwest on Sat that I can have a £3500 loan over 4 years but for 23.7%. Does anyone have any better suggestions? Would really appreciate some help,

Thanks

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1455
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1455
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 100
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 110
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1195

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
credit card....................900.......50........14.9
student OD.....................2000......0.........23
overdraft......................500.......0........ .20
Total unsecured debts..........3400......50........-

Monthly Budget Summary
Total monthly income.................... 1,455
Expenses (including HP & secured debts). 1,195
Available for debt repayments........... 260
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 210
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,400
Net Assets.............................. -3,400
Created using the SOA calculator at makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Ames

Surely you don't spend £100 on clothes every month? If you do then have you got stuff to ebay/car boot to raise some cash?

Your entertainment is also high, could you cut this? Maybe cut it out completely for a while and only use money you've made from ebay to pay for socialising?

Consolidating is really not a good idea. Loads of people on here have done it, and ended up running up the other debts again, I know I did. The 'emergency' or 'great deal' that you'll pay off on payday, which soon build up.

You've got £250 a month spare, I'm sure if you throw it all at your debts, and an extra £200 from the clothes and entertainment budgets, then you can get debt free soon without a loan.

fatbelly

be27 wrote: »

I was told by my bank Natwest on Sat that I can have a £3500 loan over 4 years but for 23.7%. Does anyone have any better suggestions?

Any suggestions will be better suggestions!

You have surplus income. What about a 0% credit card with super balance transfer facility. Wipe out existing card and overdrafts and budget to pay £300 per month for a year. Debt gone with minimal interest paid.

list of suitable cards here

If there's still some debt left at the end of the year, move it to another one.

There are also a couple of interest free overdrafts available generally, and I thought, several interest free overdraft deals for students. Are you still a student? Did you graduate recently? Have you read Martin's article?