Is a loan for me the right idea?

crazy_gooner

Hey guys, just want some general feedback here please.

I'm 21, not earning a great deal and owe Halifax two thousand on a credit card that I took out 3 and a half years ago when I went on holiday so I had "loads" of money to spend, which was obviously a mistake. Also £500 overdraft which halifax charge £30 a month.

I also need a new car now, mine's fallen to bits and is costing too much to repair and needs it on a regular basis. I want one that will last, found a few for around 3-4k, and hope it lasts me 5 years +.

Wondering, is a loan the right idea?

I'm currently paying £60 on my CC a month, which isn't great as interest eats the majority up, and £30 to halifax as I stated. So now I need a new car, is a loan the right idea?

I just thought about it as it'll be one payment for everything per month, get rid of CC fees,, overdraft fees and my car all in one.

I just need to get my life on track for the coming year.

Also, anyone know of good companies that are alright with people with a lesser credit score? I don't mind if the APR is a bit higher than Halifax, I'll have to accept this.

Thanks

hur575

I think you somehow know the answer to this, loan might seem good idea, and one payment than many but really from experience in most cases one payment is not better than 10 a month, they all go by dd any way so no hassle, the rate is the deciding factor.

If your credit file not up to scratch you will not find a decent rate especially at these times. Best thing you can do is post your spending diary in debt free section, they are helpful bunch, they will advice you how you can start saving, and get rid of your debts faster.
Best of luck.

fozmcfc

TBH, if you don't earn that much, I doubt you will get a loan.

You need £2.5k to cover current debts, + £3k at least for the car.

So basically you need a minimum of £5.5k without the additional costs of insurance, tax etc for the car.

With a consolidation loan, they will look at the £2.5k as debt + the will add the £5.5k loan, so they will look at it as £8k of debt. That is because yes it's for consolidation, but there is nothing to stop you running up the original debts once again.

Many of us have been there, done that, got a consoldation loan, then ended up 6 months down the line, owing the loan and the original debt again.

The DFW boards are really the best piece of advice to give to you.

The only slim chance you have is if you bank with Halifax and agree to pay off the card/overdraft and close the card and overdraft facility down.

That way they may look at it as a £5.5k loan, but even then they may say well you struggled with £2.5k of debt, so we aren't going to consider letting you have £5.5k + of debt.

crazy_gooner

Hey guys, thanks. I'm really in two minds at the moment, I just want this credit card paid, and the over draft sorted, and by not earning much, and having to pay for my daily/weekly/monthly expenses it's hard.

I guess I'll use the debt part of the forum.

I no longer use the credit card and I'm prepared to cut that in half.

I think the reason I've probably been looking to get a loan is more the need of a new car too.

Thanks for the replies guys. Really appreciate it.