Combining loans - advice needed!

nscott88

Hi there - im wondering if anyone can help me and my boyfriend...

2 years ago we both bought cars and got seperate bank loans to finance them. My deal was £130 per month for 5 years and my boyfriends deal was 150 per month for 5 years. However, he had a student over draft that he wanted to clear and a credit card that he wanted to clear so he combined all of this. My finance was just to cover the car.

2 years on and we have recently bought a flat. I then went on and sold my car as i wasnt using it because we were sharing his car. I got 2,000 for mine and that money is just sitting in my bank waiting to be used.

My boyfriends car is getting a bit old and we want to buy a new one. However, we cant afford to pay like 150 a month for the new one and still pay for our old cars at the same time. I feel like we're stuck for another 3 years to pay off these loans that we dont really have anything to show for. I have 3500 left on mine and my boyfriend has 6000 left on his.

Does anyone know an idea maybe to combine both and buy a new car or something similar to help us out?

Thanks in advance!

Natalie

Apples2

Consolidating debts is rarely a good idea, it simply puts a ball and chain around for for many more years than your current position.

You would have to look at the apr's of your current agreements, and decide if you would be better off taking a loan out at a single apr lower than that you are already paying.

Moving individual loans onto a joint agreement also has pitfalls, what happens if you split up??
there are dozens of threads where the happy relationships fails and the joint loan ands up the sole responsibility of one of you, the other simply legs it and stops contributing.

yorkshire-lad

nscott88 wrote: »

Hi there - im wondering if anyone can help me and my boyfriend...

2 years ago we both bought cars and got seperate bank loans to finance them. My deal was £130 per month for 5 years and my boyfriends deal was 150 per month for 5 years. However, he had a student over draft that he wanted to clear and a credit card that he wanted to clear so he combined all of this. My finance was just to cover the car.

2 years on and we have recently bought a flat. I then went on and sold my car as i wasnt using it because we were sharing his car. I got 2,000 for mine and that money is just sitting in my bank waiting to be used.

My boyfriends car is getting a bit old and we want to buy a new one. However, we cant afford to pay like 150 a month for the new one and still pay for our old cars at the same time. I feel like we're stuck for another 3 years to pay off these loans that we dont really have anything to show for. I have 3500 left on mine and my boyfriend has 6000 left on his.

Does anyone know an idea maybe to combine both and buy a new car or something similar to help us out?

Thanks in advance!

Natalie

you have answered your own question. you both took out personal bank loans to pay for the cars, so there is no way out of this unfortunatley.

and i cant understand why your bf's car is 'getting abit old', 150*60=9000-interest, surely its not old!

i dont want this to sound harsh, but getting a new car is surely out of the question. between you both, you owe £9500, even if you were to get rid of your bf's car say for 5k, you still have £4500 of debt left, AND want to take on more debt for an even newer car, then possibly be back in the same boat in 2years time!

BTW i am talking from experience..look at my sig, i took out a 5k when i was 18 for a car, then i decided i wanted a 'new' one, and got that one finance, and yes i am still paying for a car that i sold 18months ago! trust me its horrible!

please sit down and go through your figures, otherwise you will be in a worse mess than what you are now.

drbesty

You've only had the car for 2 years, it can't be that old, has the novelty of it wore off?

CHR15

drbesty wrote: »

You've only had the car for 2 years, it can't be that old, has the novelty of it wore off?

I think that is a key reason so many people end up with huge debts.

I have always said on here that a car loan should be taken for a maximum of 3yrs.

People do seem to think that new car is going to be the dream and will last forever, in reality, the novelty lasts no more than a year, the car becomes "the car" for the second, and by the end of the third year, you fancy a change (as it is getting old/ no longer the new car on the street).

with a 3yr term, the finance, by this time, has expired so you are back to square one for a new car, with more options open, including a brand new finance deal.

drbesty

I'd say only take out a five year loan if you plan to own the car for five years

nscott88

Hi all,

Thanks for the replies. You haven't been harsh. I kind of knew it was coming but just wanted a bit of advice.

By 'getting a bit old' i mean that it is 7 years old & we have just paid £500 for an MOT. But hopefully thats the repairs done and dusted with.

In hindsight 3 years max is good, but when your young & naive with no other outgoings and still living with the parents you dont really think of that!! Big regret.

Thanks guys! x