What sized loan should I get?

margaretclare

Like everyone else on here, I can't believe that a would-be accountant is actually thinking along these lines.

A 10-year loan for 'stuff' that you *need* (for need read want, would like). While I realise that you've been studying for a long while and haven't had any of the things that are supposed to make for the 'good life' in 2006, I think you may be getting carried away by the thought of these future 'big earnings'.

You should never borrow for normal living expenses nor for things which will depreciate.

Do you know what? You remind me so much of the ads on which Carol Vorderman acts as front-woman. 'While you're about it why not borrow a bit extra, that way you can have.....' etc etc.

You've been given excellent advice here so far, much of it from people who've 'been there, done that'. I can't add to anything that has already been said, except don't do it!

Margaret Clare

Eoin_McLove

Indeed. I will be borrowing just the necessary £8,000. If I need extra money, 0% cards are the way forward.

Midas

Eoin_McLove wrote:

Indeed. I will be borrowing just the necessary £8,000. If I need extra money, 0% cards are the way forward.

A decision any accountant would be proud of

I realise I was a bit late joining this thread, but well done MSE-ers for beating Eoin into the money saving decision!

Good luck - I hope the training goes well and as you say you cash in with a big payrise in a few years time. Then you can splurge

Eoin_McLove

Thank you, Midas.

Just got to sort out possible 0% credit cards for the future, scrape together about £800 for the deposit/advanced rent/admin fee for my future pad in Tunbridge Wells, and a few hundred quid for new suits, shirts, and shoes - and a new pencil case with shiny new pens and pencils. Oh, and an attaché briefcase. No yuppie is without one. :cool:

jobbingmusician

To increase your disposable income of £30 odd each week, may I mention the magic words 'mystery shopping'?

Yes, it pays peanuts, but you sound like the sort of person who would enjoy going out for a £20 pub meal with GF that was reimbursed (on top of the peanuts, I mean!) 1 free outing per week, perhaps?

Eoin_McLove

Mystery shopping, eh? Tell me more... :j I assumed this would be something done during the daytime. If this is the case, I wouldn't be able to do it.

The trouble is that I won't have much time at all to try and earn the odd bit of extra cash here and there. I'll be working 9am-5.15pm, and I'm expected to study fifteen hours each week, so a lot of my evenings, and much of my weekend, will be spent slogging away over books. I mean, I could get £400 a year teaching Latin to secondary-school pupils in Cambridge University's distance-learning programme, but it would consume too much time and effort to be truly worthwhile.

Any suggestions of 'easy' ways to make a few quid on the side would be greatly received though.

Emmzi

Just a quick note - if you can, I would make sure you have a flexible loan - so you can make extra repayments whe you get a bit of spare cash in hand. Some only allow you to repay more if you have a lump sum that covers the total - a flexible one might let you run down balance and interest paid gradually if you get bonuses etc.

Emmzi

the mortgage free wanebee board has a 'bit on the side' discussion...

Eoin_McLove

Thanks Emmzi. As things stand, I'll be going with Northern Rock, especially since there is no early repayment penalty, and you can make larger repayments whenever you like.

An £8,000 loan is going to cost me around £87.23 per month over ten years (total repaid = £10,467). I'm going to take the loan out over this lengthy period to reduce my monthly repayments over the next two or three years whilst my salary is quite average (I simply can't afford the repayments on a shorter loan-term), and then really step up on the repayments once I'm on good money as a qualified accountant. This way I should be debt-free within six or seven years, and therefore reduce the overall amount of interest I pay by perhaps 30-40%.

Joe_Bloggs

@Eoin MCLove
Have you considered applying for a Sainsbury 0% purchase card. I got mine when it was 12 months interest free. It looks like it's only 10 months now.
I even paid my council tax with it (treated as a purchase by my council ).

These cards can lead to ruin in the hands of those under existing financial stress. They can help with cash flow but you must plan an exit strategy well before the rate shoots up to around 20%.

J_B.