HELP!! Cash Flow Crisis - Really short loan?

jazz_jasper

Hi,

I have a really big cash flow problem at the moment, I'm due to move house so need some money to put down deposits etc.

I am already very close to my overdraft limit. This is fine because on the 20th November I'm due to be paid which will put me back into credit (well almost!).

In January I am also due a huge whack of money as I start a new job and they will pay me a good sum of money every week.

So the problem is that on Wednesday 11th I am due to put down £2000 on a new place. This will take me to -£1900 in my overdraft. My limit is -£2000. I can live with this cos will pick up bits of cash over the weekend.

However on Thursday 12th, my rent for the current place goes out at £695. This will obviously tip me well over my over draft limit.

I was thinking if I could get a loan for say £5000 this would put me back into credit and tie me over until January when I get paid good money.

My question is this...

If I take out a loan they usually don't take the first payment until 3 months after you receive the money. Basically I could pay back the entire amount before the 3 months is up. Does anyone know how much they would charge me? I'm looking at halifax as I'm already a customer...

I can't paste a url apparently, but if you go to the halifax website, click on 'loans' and then scroll down a bit to 'Unsecured personal loans for other amounts' (third box down), click 'find out more', then click on 'summary box'.

The bit i don't understand is the 'early settlement bit'.

Can anyone make sense of this or give me some advice? The problem here is cash flow and needing money by Wednesday. Once I get to January it's plain sailing till 2011!!

CLAPTON

it says the you will pay 58 days interest to settle early

so e.g. on 5,000 you would pay an early settlement fee of

5,000 x 12.4% x 58 /365 = £102

I can't see anything about having a three month payment free period however.

lhogg65

Wake up and smell the coffee!
You appear to be living beyond your means as there is no budget to cover your moving costs.
It is unlikely that you will be considered for a favorable loan rate even as an existing customer if you cannot demonstrate affordability. Any reputable lenders will not want you to over commit and will not take future income into account unless you are in one of the highly paid professions with an established increasing income scale.
Talk to your bank to see whether they will consider extending your overdraft temporarily-but you must be able to demonstrate HOW you will reduce it.
Why do you need to borrow £5000 anyway?
If you can only be confirdent about your income to 2011 you need to start saving now-just in case you don't walk into an equivalent contract then, surely?
Good luck.

jazz_jasper

Thanks for your input guys.

Yes lhogg65, you're right! I am living beyond my means.

But the only reason I am is because my youngest daughter has cancer and over the past year we have poured all of our life savings into making sure she has the fastest and best treatment.

I have taken the past year off work to look after her and be with her and my family. I have to go back to work in January because we have finally run out of funds. However the nearest contract I can get is in January, hence needing money to tie me over.

When I take on my new contract in January I will be earning £1200 per week. This is why I need to borrow £5k to tie us over to January. £1200 per week to nothing per week is a big drop.

I only hope that the bank accept me. Do you think they might? I am self employed. I can't 'prove' that I'll be earning that money in January even though I know I will be. If they look at my previous bank statements do you think they might think about it?! So hard to tell!

More input is much appreciated.