I need a loan and I need it now!

hur575

It really amaze me how many people think, they must have a loan, and they think it is a necessity.



Top Reasons Not To get a loan for

1. Wedding – do you really need to start a new stage of your life with debts??
2. Consolidation loan -one simple payment instead of many, answer to all your debts problems NOT, it is only simple for those who can’t do the maths.
3. Holiday- really?
4. Get furniture for the new house- saving sounds good!
5. Gifts- lol

fleagle21

That's not judgemental at all...

And if people who can afford repayments just want the money sooner than they can save it, why not?

Asa

I agree with you on consolidation, i dont see how getting another loan to pay off all your debts just so you can make one payment at a time?
but everything else, no, because if everyone could just save instead of borrowing, then the banks would be bankrupt!
if you have just moved into a house and have no furniture, you are not going to sit on the concrete to save yourself a few quid in intrest are you?

If you cant manage you debts then you shouldnt have borrowed in the first place. most people would keep a electronic copy off all the finances, even using MS Excel is a good program to use to keep track of stuff.

But getting yourself into more debt to get out of debt baffles me.

But maybe im wrong . . .

There is nothing wrong with borrowing, as long as you can afford to pay back every penny.

fleagle21

Asa wrote: »

I agree with you on consolidation, i dont see how getting another loan to pay off all your debts just so you can make one payment at a time?

If you cant manage you debts then you shouldnt have borrowed in the first place. most people would keep a electronic copy off all the finances, even using MS Excel is a good program to use to keep track of stuff.

But getting yourself into more debt to get out of debt baffles me.

But maybe im wrong . . .

People usually don't realise they can't manage until they're not managing, if that makes sense!! And for someone with poor financial management, consolidation would make it easier management wise. But agreed, that it does seem a bit backward to get into more debt to get yourself out - if the problems are that severe, get professional advice rather than try and fix it yourself IMHO.

Asa

fleagle21 wrote: »

People usually don't realise they can't manage until they're not managing, if that makes sense!! And for someone with poor financial management, consolidation would make it easier management wise. But agreed, that it does seem a bit backward to get into more debt to get yourself out - if the problems are that severe, get professional advice rather than try and fix it yourself IMHO.

but you can understand where im comming from.

if some was to apply for a loan, they would sit there and work out if they can afford it, usally with a SOA, thats managing money.
if that cant do that then they should be allowed a loan.

But to be honest its down to irresponsible lending on the banks part,
at least 10% of people who borrow cant afford to pay it back.
i read on the HSBC website that if you want a CC you have to be earning more than £1000 p/m OR be a student, !!!!!!?!?
you cant tell me that is responsible lending, right?

Tixy

I think the OP is referring to the many many people who post on this board to say they have been turned down for a loan or several loans (usually due to poor credit histories, no credit history or already having too high a debt to income ratio) and still say they desperately need a loan and want ideas of where they can turn to. They even often add they are happy to accept high APRs.

For people in that position then I would say that yes all of the above are bad reasons to get a loan.

fleagle21

Tixy wrote: »

For people in that position then I would say that yes all of the above are bad reasons to get a loan.

Totally agree

fleagle21

Asa wrote: »

but you can understand where im comming from.

if some was to apply for a loan, they would sit there and work out if they can afford it, usally with a SOA, thats managing money.
if that cant do that then they should be allowed a loan.

But to be honest its down to irresponsible lending on the banks part,
at least 10% of people who borrow cant afford to pay it back.
i read on the HSBC website that if you want a CC you have to be earning more than £1000 p/m OR be a student, !!!!!!?!?
you cant tell me that is responsible lending, right?

It isn't responsible for them to lend to someone who can't afford to pay back. But, they only have so many checks they can do - the buck lies at the door of the person who signs the agreement.

I don't think it is neccessarily irresponsible to lend to a student - most have their loans alongside a part time job, and it would be unfair to exclude mature students with other means of support just because they don't have £1000 per month coming in.

hur575

Thanks Tixy, that exactly what I meant. How many threads here about browning what they can’t afford for something is not necessity in life.

Fleagle, I am sorry if it sounded judgmental , that was not my intention, I myself made many bad choices in the past. I really believe that financial education must be thoughts at schools, as the whole system encourages BAD debts, people do not realise the problem until it is too late.

fleagle21

hur575 wrote: »

I myself made many bad choices in the past. I really believe that financial education must be thoughts at schools, as the whole system encourages BAD debts, people do not realise the problem until it is too late.

Me too and agreed, but in some cases it won't make a difference - in my family, there was never any debt for anything, it was work hard and save hard. As soon as I hit 18, and got all the credit thrown at me, the lessons 'learned' went out the window! Still, learnt an even better lesson after accruing and then paying off a large amount of debt. Have some more now, but not due to being frivilous, so I'm reasonably ok with that.

fozmcfc

Generally consolidation loans don't work, but not because of the product but because so many people including myself, who get consolidation loans, spend back on the cards they have just cleared with the loan.

I guess a BT between credit cards, could be considered to be a consolidation loan. This is one way I have managed to sort out my finances by taking out more credit.

Because of the fee you pay, you still owe more, than you did before. However, providing you stop using/cut up the original card and pay the other card off in the time of the 0% you end up paying less and still have time to pay.

Loans for any other purpose such as holidays etc is ok, but it really does get my goat, when you see people come on here, struggling with their debt and then saying I'm going on holiday soon and need a loan.

Nothing wrong with going on holiday even if you have debt, but if you are struggling to pay back debt a holiday is one of the last things you should be doing.

It is nice to see lots of people on the forums, who do though manage to clear their debts with the advice/support given here. I know once I'm clear of debt, I intend never ever to be in anything other than very short term (i.e. 3 months or so) debt ever again.