Good Idea/Bad Idea

barbarawright

Have you looked at the many, many threads on consolidation loans on these boards? The fact that you have been living beyond your means (if only by a few quid each month), and you are now talking about freeing more money to do what you want, should be ringing alarm bells. Why not use your spare money to actually pay off your debts? You do realise that a consolidation loan may be only a small monthly sum but it will take a lot longer to pay off than just paying more than the minimum on your credit card? And if you've really found a way of saving money that gives you a higher interest rate than any loan repayments, could you let the rest of us into the secret!

fozmcfc

Sorry but something doesn't add up here, you are paying £400 a month, which basically means 8 months of paying and you are debt free and in 8 months have an extra £400 a month in your pocket. In fact 7 months and maybe a payment of £100 - £150 in the final month.

The interest on the credit card wouldn't be that much and the overdraft fee, means that the vast majority of that £400 must be towards the car finance.

But you want to take 5 years (60 months) to be debt free instead. :rotfl:

Hmm, let me think, excuse me for a minute. /me thinks, ok 8 months, or 60 months, this is a wind up, yeah it must be, surely, yeah no one would do that, it's gotta be.
Yep definately a wind up, congrats for getting people going :T

missile

Do you really want to be paying back a loan for the next 5 years:eek:

DayDreamSaver

Hi

Your new car won't be fully paid for - you'll owe more as over 5 years the interest will work out more than what you pay now.

Can you move the credit card to a 0%? Pay a little bit more than minimum and that will soon go.

I think a loan is a bad idea - you don't know what might happen over 5 years and what money you might need. Best to tighten your belt a little for a few months, become debt free, then every penny is yours!

DDS

redpete

PolaBear wrote: »

Doing this will put me completly in the black and give me freedom to do things i want to do without any oweing,

Of course you won't be in the black because you'll have the loan to pay off. This is a dangerous way of thinking about your situation because you'll be imagining you are better off than you really are.

Duncombe

somethingcorporate wrote: »

If you have savings why would you want to pay to borrow money?

Sounds bad to me.

My thoughts exactly.

I am totally as a loss as to why, when you have money saved, you would want to pay for a loan (and get into more debt..thats what loans are) that you dont need.

Is there something you're not telling us....or are you really this clueless?

revolu

Keep paying the car down, getting a loan for this crazy
Arrange with the bank to pay the o/d down each month on payday
Get a loan over say 1 year to pay off the credit card then close the account.

PolaBear

Thanks everybody for your help, without going into more details Iv managed to work it using some of my savings to reduce my overdraft number, and now only 5 months on car payments. My credit card was already a 0% deal until May so now making money and reducing what I owe without any interest payments (car was also 0%). Idea for loan was really to wipe all of this out and be in position where all money coming in was mine apart from the loan payment which was less per month, and own the car outright, though am better doing what I do now. Thanks again for your advice, can see how easy it is to get into situations without thinking things through, was just in crazy mind for a bit. One question though, how long will my overdraft (fee free) be ok in a position where I owe?? By that I mean will the bank want to be in the black by a certain time??

Thanks again to everyone
James

PolaBear

By that I mean how long will the bank allow me to stay in an agreed overdraft