Is it worth taking out a loan?

MFWannabe

I think you need to sit down and work out a way of paying off what you owe now before you think of moving. You state that if you move to London the job you get will only pay about the same as you earn now so how would you afford to pay new loan? Plus the costs of living in London will be higher anyway.
taking out payment protection so that the payments will be covered? Do you realise that you sign to say that there's no reasons you know of at the time of signing the agreement that you are likely to lose your job etc...

zppp

OP, I suggest you get advice from the CAB on this issue. If you cannot pay back the amount you owe to the university, it is likely you will be in the same position with a loan.

Kamen_Rider_W

FREEZ wrote: »

I think you need to sit down and work out a way of paying off what you owe now before you think of moving. You state that if you move to London the job you get will only pay about the same as you earn now so how would you afford to pay new loan? Plus the costs of living in London will be higher anyway.
taking out payment protection so that the payments will be covered? Do you realise that you sign to say that there's no reasons you know of at the time of signing the agreement that you are likely to lose your job etc...

I wouldn't expect to be covered by insurance for giving up my current job. But were I to get a new one and then lose my job (very possible in the current situation) then I might be covered, which is important over a repayment period of 4-5 years. I live about half an hour from London by train so prices here aren't much lower than in the city ...

lynzpower wrote: »

But if you just pay it off regularly then they wont need to take court action. Whats the rate you are paying this off at the moment ?

3%

zppp wrote: »

OP, I suggest you get advice from the CAB on this issue. If you cannot pay back the amount you owe to the university, it is likely you will be in the same position with a loan.

I went to the CAB. The advisor helped me work out all my incomings/outgoings and then to contact the utility companies to which I owe money. Then she said that unless I wanted to consider the option of a Debt Relief Order (I think that's what it's called - the one you can have if you owe less than £15 000) my only option was to earn more ...

zppp

Kamen_Rider_W wrote: »

Then she said that unless I wanted to consider the option of a Debt Relief Order (I think that's what it's called - the one you can have if you owe less than £15 000) my only option was to earn more ...

OK, so taking this advice, you are obviously in Scotland, my only understanding of a DRO is that it bears similarities with an IVA. Is there a reason why you don't want to do this?

The other option is to write to your creditors with the SOA you completed with the CAB, to make a set repayment monthly, even if it's a token payment.

Finally, as they mentioned you could look at your income and expenditure to find ways of improving it. i.e. losing any non-essential direct debits etc (see Martin's guide). Perhaps you could post up an SOA so we can have a look for you.

skintdragon

hi OP.

I understand your dilemma, but please think very carefully about taking out a loan.

I learnt the hard way; took out about 3 loans, consolidating debt etc. It's a never- ending spiral of debt, and is not a solution/ quick fix. I am sure the banks would disagree (if they agree to lend you money in the first place). I felt like a hamster on a hamster wheel.

When I finished Uni here I wanted to move to London but due to massive debts and no job at the time I stuck it out here in Yorkshire (thinking it would be cheaper to live up here than London). Despite that, I stayed in debt for many many years. I hope to be completely debt- free by next week (:j:j), first time since I started University all those years ago.

On the flip side: A couple of years ago, I took a massive risk and took out a loan to fund my (further) studies to get my foot into the door on the job that I do now. It was a huge gamble which is gradually paying off, but the months of unemployment and arrears in monthly payments have probably shot my credit rating to pieces. If I could do things differently, I would have never consolidated any of my pre- existing debts with new loans. I often wondered what would happen if I became ill and unable to work after taking out my last loan to fund my recent studies (I guess that's where PPI comes in handy eh). I would recommend you think very carefully about your decision and think about how you would fund your repayments.

These were the random thoughts that conjured up when I read your post, and I thought it would be a good idea to share it on a public forum... sorry if I sound like I am just rambling!!!

Sorry I didn't mean to lecture you; I just don't want people to take unnecessary risks!!

Take it easy :A

Kamen_Rider_W

I had another argument with the housing association this morning, who have now told me it is the law I have to give them my forwarding address and if they don't have it by the end of next week they will start debt recovery action against me. I've had to give them the new address but at this stage I think they are looking for any excuse to take me to court. Even borrowing £1000 would help me pay off them and the utility companies, I don't think it would necessarily be quick or easy but it would get them off my back for now ...

Apples2

I haven't read all of this but WHY do you think it is okay to move and not give your address to someone you owe money to??

They aren't "on your back" at all, you simply are indebted to them and they don't want you leggin' it with the wonga.

Kamen_Rider_W

I left only ten days ago and have only just found somewhere to move in (couldn't go where I was initially going to as the landlord was having problems with the Council) And I don't want them sending me endless "reminders." If they do, I'll do what my Gran does with junk mail - send it back with no postage on so they have to pay for it

Kamen_Rider_W

... I have every intention of paying but even when I lived there and was paying rent, they sent me useless letters every single day. Not about the money but all kinds of rubbish, I certainly don't want any more

A_nice_fellow

Are you still at university?