In need of some advice!!!!

lynzpower

Can I check that this isnt the Cahoot flexible loan

For heavens ske dont get one of those - plenty of threads on the loans board about these

ZTD

A "normal" loan is where after a month, they slap a month's interest on, as you'd expect.

A front-loaded loan is where they slap all the interest onto the loan right at the beginning.

You want a normal loan that allows you to pay it off without penalty. Ironically a cahoot flexible loan would probably be ideal. :eek:

However see everyone else's experiences with this.

There are 2 dangers.

1. Your mother takes the debt on, and you can't get a loan to take it back off her - or it's at an outrageous interest rate.
2. You get a loan, but it isn't enough to take all the debt.

loulouloulou_2

I'm pretty sure its not a cahoot loan.

She has a friendly bank manager at her Natwest branch who is very helpful. He does the works accounts too so has known our whole family for some years now.

I'm pretty sure its a 'normal' loan...

quote:

There are 2 dangers.
Your mother takes the debt on, and you can't get a loan to take it back off her - or it's at an outrageous interest rate.
You get a loan, but it isn't enough to take all the debt.

This is obviously something i worry about. I think mayne for the time being i should just stick to my own credit cards untill maybe i could talk to my bank again. I thought it a good idea at first but you've all helped me think of things i didnt think of myself, and now i do think of them i dont like the idea so much!

Thanks to everyone about this....

Think i'm gonna read up on Cahoot loans now, are they really bad??

lynsayjane

obviously everyones circumstances are different (hugs to lynz). but when i was a student my mum took out a guarentor mortgage so i could buy my first home which i could never have done without her (bless her cotton socks!). if i were ever unable to pay the mortgage we knew my first move would be to borrow from her to pay it, defaulting was never going to be thought of. and sure enough, despite illness and unemployment and getting myself into debt :rolleyes: i've always managed to pay in full and on time, i've never defaulted on anything and i dont recall ever having to borrow money for the mortgage (the electric bill is a whole other story!). and two years ago i took it all into my name so there are no more worries for her.

like i say circumstances are different for everyone, for us that worked, but for others (like someone i used to be friends with, selling her flat her parents bought her after less than two years) it wouldn't. you just need to weigh up all the options and do what you and your mum believe is best for you. do let us know how it goes.

loulouloulou_2

thanks honey!!

i'm going to have a good old think tonight and have a chat with Mum tommorrow and see what happens - i will keep you all updated!!!!!!

Good luck to all of you!!!! :beer: :beer:

It's nice to know its not just sa old me stuck in on a Saturday night.... although lucky old me gets to watch Star Wars(AGAIN) with my bloke!!!!!!

lynsayjane

loulouloulou wrote:

It's nice to know its not just sa old me stuck in on a Saturday night.... although lucky old me gets to watch Star Wars(AGAIN) with my bloke!!!!!!

sod star wars, it's crap anyway, get your party hat on and come join the dfw party! it's the only place to be on a saturday.

ZTD

loulouloulou wrote:

I'm pretty sure its a 'normal' loan...

Check. It's always wise to be sure.

loulouloulou wrote:

ZTD wrote:

There are 2 dangers.
Your mother takes the debt on, and you can't get a loan to take it back off her - or it's at an outrageous interest rate.
You get a loan, but it isn't enough to take all the debt.

This is obviously something i worry about. I think mayne for the time being i should just stick to my own credit cards untill maybe i could talk to my bank again. I thought it a good idea at first but you've all helped me think of things i didnt think of myself, and now i do think of them i dont like the idea so much!

I was just pointing them out as a possible problem. Both of them just mean that you would have to pay your mother, and she'd pay off the loans in her name.

That would leave you vulnerable to Lynzpower's situation, but you're going to have to make an informed decision on just how much bad-luck you are likely to have.

frugglewump

loulouloulou wrote:

Think i'm gonna read up on Cahoot loans now, are they really bad??

It varies.

One of the major complaints about the Cahoot loan is they advertise at 6.9% (or whatever it is now), so 2/3rd applicants must get that rate. You get that rate and all looks good, then 1 year after you have opened the loan they up the interest rate.

For example my 7k cahoot loan
6.9% July 2003-2004
8.2% August 2004 - Jan 2005
8.4% Feb 2005 - July 2006
9.1% August 2006 onwards

The other problem is the quality of the customer service - although I understand that has improved.