Loan Opinions - Grateful for any Help

evissa

Hi, Im a 23 y/o in full time employment, still living at home with my parents.
I am currently earning a net pay of £1100 a month.

Current guaranteed monthly outgoings are: £500
(I am going on holiday in July so alot of my spare money is being saved for that)

I need to try and obtain a loan of £1500 but currently have some other outstanding debts too. These consist of:
£2000 overdraft with Natwest
£500 credit card with Natwest
£1500 unsecured personal loan (quite a high APR)
£500 catalogues etc

I am currently only paying the minimum required on each of these every month but ideally want to eventually begin to clear them all. I am one of these people who if they have to pay something they will, if they can only pay the minimum they take that option.

Going by this i was considering trying to obtain a £6000 loan (looking to pay back in 36months) instead thus consolidating my debts and having one monthly payment which i have to pay a set amount to clear as opposed to 4 minimum payments as i do now.
According to Experian my credit rating is just below fair.

Any suggestions on what would be best for me would be greatly appreciated.

zppp

I would suggest you do a full SOA and post up, as a loan could be declined on the grounds of affordability. The £500 a month, is this rent? Does this include repayments for your CC, loan and catalogues?

Also, is your NW OD still interest free?

casperlee

Go see Natwest, talk to them about consolidating all your debts. With your guaranteed income there should be no problem.
They will want to keep you as a customer, so should offer you a decent APR and loan repayment scheme.

evissa

zppp wrote: »

I would suggest you do a full SOA and post up, as a loan could be declined on the grounds of affordability. The £500 a month, is this rent? Does this include repayments for your CC, loan and catalogues?

Also, is your NW OD still interest free?

The £500 includes rent and at least minimum payment of all the named debts as well as phone/ internet bills. Overdraft is no longer free.

Emmzi

what is the £1500 for?

evissa

Emmzi wrote: »

what is the £1500 for?

I'm doing the New York Marathon in November.
So it's to cover my flights / accommodation / race entry and spends etc.

Theres the opportunity to get alot of this refunded afterwards through the charity im running on behalf of. The more i raise for them, the more they offer to refund back.

Emmzi

ok. just establishing it was in fact discretionary spend.

run the London marathon instead. Don't make the charity pay your costs. Use all of the sponsor money for the charity. Lets be honest, there are loads of UK based events and UK based charities that you could run for if fundraising was your main aim. This is about the travel.

your lifestyle is not matching your income. You are 23 and your debt is over 4 months salary before any living costs. Therefore, you are becoming a bad risk for lenders. £1100 is not a huge salary, therefore you probably don't have a lot spare, and from your spend patterns, you like nice clothes and holidays which you really can't afford.

You have around £100 a week spare *before* loan repayments. I can't live well on that. I certainly couldn't at 23 when I liked going clubbing twice a week and at least one new outfit a month to wear to do that. And I spent 25 - 35 trying to pay back the huge debt I had amassed.

Please have a read of some of the diaries on the DFW board for further identical examples - we've all done it....

iolanthe07

I am one of these people who if they have to pay something they will, if they can only pay the minimum they take that option.


In other words, one of those people who help rack up the Banks' profits. Paying the minimum each month on credit cards is really a mug's game. Even paying a bit more back than the minimum makes a huge difference to the time it takes to clear the debt, and dramatically reduces the amount of interest you pay.

woody01

I doubt you would get a £6000 loan when you take into account the lower salary and the debt you already have.

I agree with what was stated above....your salary (only £17Kish by what you have said), is a mismatch with your expenditure.
You cannot afford the lifestyle you want on current earnings.

50quidonRED

I am currently earning a net pay of £1100 a month.

Current guaranteed monthly outgoings are: £500



WHERE DOES THE OTHER £600 GO? PARTYS AT WEEKENDS ?

Wutang_2

evissa wrote: »

I'm doing the New York Marathon in November.
So it's to cover my flights / accommodation / race entry and spends etc.

Theres the opportunity to get alot of this refunded afterwards through the charity im running on behalf of. The more i raise for them, the more they offer to refund back.

I love it!!