Student Loan & Taxman

adysiege

I am currently employed full time in Belfast, have been this last year. How long the work will last I can't answer because its within construction.

I have a student loan of approx £8000 which take £50 out mounthly of my salary. As well as that I have to pay the taxman £2800 for a bill I didn't know about.

Would it be best to get a one off loan to pay it?

Is there any good suggestions of how to get out of this mess?

All and any suggestions are much appreciated.

Thanking you

Adrian

redpete

No point in getting another loan to pay off the student loan, anything else will have a higher rate of interest and you will have to keep paying it if your income drops or you lose your job.

Have you been asked to pay the tax bill in a lump sum or are you being allowed to pay it off in instalments? What interest rate are HMRC charging on the money you owe them for this tax bill?

adysiege

They requested it as a lump sum but my accountant is trying to get a better deal. Not sure exactly what the interest payments are but they continue to add on fines for late payment. They want it paid off in 4 months but its unrealistic, I havent a washer

redpete

adysiege wrote: »

I havent a washer

??

I suggest going on to the DFW board and posting an SOA to get advice on how you could spend less and/or earn more. It is not necessarily a great idea to get a loan to pay off a tax bill. Is your income high enough and your commitments low enough to be able to get a loan? Have you worked out how much a month you can afford for the repayments?

adysiege

To be honest I havent looked about a loan but i have thought about it. Just looking at all the possible angles to get debt free and start saving. With work not a certainty i'll probably hold off until i get my tax back and see how far that takes me.

Cheers for the help

Adrian

custardy

adysiege wrote: »

They requested it as a lump sum but my accountant is trying to get a better deal. Not sure exactly what the interest payments are but they continue to add on fines for late payment. They want it paid off in 4 months but its unrealistic, I havent a washer

i assume you mean the bill of £2800,not the student loan?