Young person needing advice

moneysavernoob

Please can someone help me. i understand that if you have debts that you cannot afford to repay you can take certain routes to lower the repayment and save your self alot fo stress.
I am on a low wage - I normally have a disposible income of around 300-400 after bills and food expenses.
I have just moved out and was considering getting a loan or buying items (furniture) for my new flat from a cataloge company which I can pay for installments.

I basically plan to use my disposible income to repay my loan / debt rather than saving my dispsible income up for the same items. Moved out recently and just want to decorate really.

Which plan would be better?

Thanks in advance

Lokolo

It will cost more to have a loan and debt than it will be to save up and then buy.

skintdragon

I think it would be wise to use your disposable income to buy what you need in dribs and drabs, rather than take out a loan or buy out of catalogues where interest rate charges are massive. You will probably find yourself spiralling into really deep debt if you take this route. You don't want to be using all your income on debt repayments, it will drain you.

Tixy

Hi

moneysavernoob wrote: »

Please can someone help me. i understand that if you have debts that you cannot afford to repay you can take certain routes to lower the repayment and save your self alot fo stress. if you already have debt commitments and then cannot afford to repay (say through lost income or something) then you can sometimes negotiate with a creditor to pay lower amounts than you originally agreed to. This can often have a negative impact on your credit file and you sometimes get defaults on the accounts which makes it difficult to get any mainstream credit for the next 6years.

So yes it is possible but not something to plan to do. If a creditor thinks you can afford more than you offer they do not have to accept your offer and can take you to court.

I am on a low wage - I normally have a disposible income of around 300-400 after bills and food expenses.
I have just moved out and was considering getting a loan or buying items (furniture) for my new flat from a cataloge company which I can pay for installments. Have you tried freecycle and freegyle instead? That way you get things for free and can then take your time to save up for replacements if you need.

Don't buy anything more on credit than you absolutely have to. Far better to save up for things first and but them from somewhere much cheaper than a catalogue. Catalogues will either charge interest or if the purchases are interest free it is because things are much more expensive in a catalogue, so you still pay a premium either way.

I basically plan to use my disposible income to repay my loan / debt rather than saving my dispsible income up for the same items. Moved out recently and just want to decorate really. Can be very cheap to redecorate, tin of paint or 2, couple of brushes, maybe a roller - cost £20-£30.

Which plan would be better?

Thanks in advance

Don't take on any debts that you know you cannot afford- if you borrow money (or buy things on credit) knowing you cannot afford the repayments then this is fraud. Don't take on any more debts than are absolutely essential, its not worth it for luxury items.

You can get such a lot for free on freecycle or freegle or very cheaply second hand from car boot sales or ebay or gumtree etc.

nluk100

Are you able to get a 0% credit card? That way, you could buy the furtniture / paint you need now ans then save up the money to repay the full amount borrowed on the card over a period of 6 months or so (are you able to save £100 per month over 6 months?)

Please make sure you do this and don't let it run over the 0% period.

ILW

moneysavernoob wrote: »

Please can someone help me. i understand that if you have debts that you cannot afford to repay you can take certain routes to lower the repayment and save your self alot fo stress.
I am on a low wage - I normally have a disposible income of around 300-400 after bills and food expenses.
I have just moved out and was considering getting a loan or buying items (furniture) for my new flat from a cataloge company which I can pay for installments.

I basically plan to use my disposible income to repay my loan / debt rather than saving my dispsible income up for the same items. Moved out recently and just want to decorate really.

Which plan would be better?

Thanks in advance

Sounds like you have already decided to default before you have even got the loan, unless I am reading this wrong.

JimmyTheWig

I'm with Tixy on this one.
Freecycle / freegle is a brilliant way to do this.
You might not get everything exactly as you want it (e.g. sofa may not match wallpaper) but it will give you a good start to what you need.
You can then replace this stuff over time when you can afford to.

And don't forget to put the stuff you are replacing back on freecycle / freegle when you're done with it...

shinga

I think you should look at buying second hand furniture, look in your local newspaper under classified ads, car boots etc, this will save you a lot of worry, and you don't want to be blacklisted so young before you even get started.

emmell

When my son bought his house we got lots of stuff off ebay, two white leather sofas, stainless steel cooker, stainless steel fridge freezer, silver washing machine, glass coffee table. He took his bed from home and his tv and dvd player. The only things he has replaced in two and a half years is his tv and dvd and hi fi etc., and he saved up for those
ML.