Thinking of getting a £10,000 loan

Husna

Hi all

This is our situation.

We owe £3500 on 3 different cards. I've balanced tranferred and moved £1800 at 3.94%, £700 at 5.9%, both 'life of the balance' cards, and the remaining £1000 is interest free til July, but I will soon be applying for another BT card to move that debt onto (HSBC 15mnths interest free on BT). I will be able to request a credit limit increase on the 3.94% card in July too, which I will do, and if that goes through, I plan to move the £700 onto that card instead, therefore, pay less interest.

We're thinking of applying for a A&L loan for £10,000 as their APR is cheapest at the mo, 7.8% typical. I realise that there is a chance that I may be offerred a higher rate. If I get it over 6 years, it would cost me approx £175 a month, which I can afford.

We need it for a new kitchen (£4000), bathroom (2000), fireplace (1000) and car (£3000).

I earn approx £8000 p/a and my husband earns approx £8640, both after tax.

My husbands been refused credit before, and I never have so thought I would apply. What are the chances I could get the loan if I earn only £8000 a year???

I already have a mortgage with A&L so thought that may help.

I could really do with some advice

PS, if I got offered the loan at a higher rate, could I refuse it and would that damage my credit report?

andys15

6 years is a huge commitment. Why dont you pay your debts with the £175 you can easily afford and look at it again next year.

Tixy

To get an unsecured loan in excess of your salary, when you already have debts and quite a bit of credit sounds extremely unlikely in the current financial situation.

Husna

Thanks for your replies.

That kind of puts a dampener on things. We do need it. We wouldn't really take out a loan if we didn't have to. We would delay things til next year, but because of family circumstances, we need to get the kitchen and bathroom done within the year. Husband really needs a car for work. And I've been wanting a fireplace for a while, so thought we'd get all of it done with the one loan.

Do you think if I spoke to A&L I might stand a better chance, like I said I have a mortgage with them and a current account.

andys15

Do a SOA,and we can see your income/outcome

Tixy

Even if you really do need it does it all have to cost so much? Does a bathroom need to cost £2k? does he need a car for £3k? can you not get a second hand fireplace?

On the wages you both earn and considering you already have debt I would be looking for the cheapest possible option.

Based on the info you have given I also doubt your mortgage company would be any more likely to give you an unsecured loan.
If you have a lot of equity in the house they may be prepared to give you a secured loan - however this would not be a good idea as you put your house at a greater risk should one of you lose your income.

ILW

Sounds like you are already living beyond your means and looking to dig yourselves in even deeper. Look at increasing your incomes before taking on more debt.

Husna

I've used the budget planner tool on this site, and it came back positive. We have about £1200 a year leftover after all outgoings.

Its surprising how much these things cost. Honestly, I'm all about saving money where I can and this site has helped me alot. Although I can buy the bathroom suite, tiles, taps etc for probably £1000, its the labour that costs the most.

Same with the kitchen. I've got my desgin and researching loads of different companies to see who can give me the cheapest quote. I've budgeted £4000, including labour.

As for the car, it will cost upto £2000, with the other £1000 for insurance, MOT and tax.

And the fireplace, I would happily buy a second hand one, but it needs to be fitted into a wall from scratch, ie theres no fireplace there at the mo. SO the wall will have to be broken into, whcih is quite a big job.

Fonz_2

Is this a windup?

You have £1,200 A YEAR after all your commitments and you want to get into more debt?

drbesty

This has to be a windup

no_more_cards_for_me

Husna wrote: »

I've used the budget planner tool on this site, and it came back positive. We have about £1200 a year leftover after all outgoings.

Its surprising how much these things cost. Honestly, I'm all about saving money where I can and this site has helped me alot. Although I can buy the bathroom suite, tiles, taps etc for probably £1000, its the labour that costs the most.

Same with the kitchen. I've got my desgin and researching loads of different companies to see who can give me the cheapest quote. I've budgeted £4000, including labour.

As for the car, it will cost upto £2000, with the other £1000 for insurance, MOT and tax.

And the fireplace, I would happily buy a second hand one, but it needs to be fitted into a wall from scratch, ie theres no fireplace there at the mo. SO the wall will have to be broken into, whcih is quite a big job.

You cannot be serious, don't take on more debt.

Funding insurance, mot and Tax on a loan - now way is that a sensible.

You have £1,200 left over for the year.

Get another job, you cannot afford all this.

Or have you considered going on the Game ?