Finance on toys

liftec

Hi all, I am 22 and in a pretty secure full time job doing around say 50 hours a week. I earn roughly £28,000 a year. I took out a mortgage on a £120,000 house last year. My query is, I took out a loan when I was 17 for about £7000 to buy a car(with a bank I am no longer with), and I then took out another loan last april for £6000. I also have finance on a shotgun for £1000 that i took out in start of december. But I am looking to buy a mx bike for £3000 on finance, My main query is should I go ahead and apply for the finance as I am able to make the payments, or am i getting a bit out-of hand with finance. I would like to stress that my parents lost a lot of money a few years back by selling there house after paying the mortgage of and then spending the money and then starting again in a right mess, I dont want to be in this situation but I also feel one live you get, live it.

drew2k9

i think you know yourself or you wouldnt have asked.

bad idea, you have a car that you dont own, a house you dont own a shotgun you dont own a 6k loan for who knows what and now you want a bike you wont own.

you will just be buying more debt, not to mention it will cost money to run insure tax etc, so it wont be just 3k loan you take, it will cost a lot more in the longrun.

if you have seen the situation your parents are in and dont want to get into it, then use your money to pay off your debts, not gain more debt.

pinkarsenalprincess

Stop taking things out on finance. Buy them when you have saved up and can afford them.
You say you are a in a 'pretty secure' job but there are no guarantees in life.

barbarawright

Is this for real? You paid way over the odds for a decent shotgun, you took out a loan when you were under-age, you currently owe 6 month's salary (apart from your mortgage) and you seriously want to owe more money? I can only hope your job is completely secure...

dunstonh

My main query is should I go ahead and apply for the finance as I am able to make the payments, or am i getting a bit out-of hand with finance.

You seem to be funding your lifestyle using loans. That will either end up with you getting into financial problems or realising it just in time and having to go through a period of austerity and get used to living to a lower standard (lower than what you have got used to AND that which you would have had if you hadnt had the loans).

Borrowing on some things is fine. However, you do appear to be going over the top and if you dont realise this soon it could easily end up in tears.

opinions4u

I think the post is a load of bull.

I took out a loan when I was 17 for about £7000 to buy a car

Peelerfart

Brave words o4u the OP has the shotgun not you !:rotfl:

[Deleted User]

Sounds like you are lining yourself up to be in debt to people for the rest of your life

I will borrow for essential 'needs' (housing, transport) but luxuries and toys, ie. 'wants' are good to pay out from savings.

You've got a lot of debt for your age and it sounds like its a bit of a family habit

liftec

Thanks for the advice people, just to clear something up though, My current debt is a mortgage (which i think most people have) and also a loan with £4000 left on it which I took out to do essential repairs to my property. My shotgun on finance, was a buy which I have saved up 3quarters of the money, The story was I went to scotland shooting and my gun kept braking so I bought this one which has ten years warranty and the intrest charges me £100 extra. I am very cautious with my spending to regards of life, i.e i dont drink, I dont smoke, I only have my shooting hobby which does pay its way with food when we have a good day. I dont want my !!!! slapped on here, Because at the age of 12 i used to be south coast mx champ, the bug still lingers to have another go, however as my missus just pointed out- if I fall and brake my neck then I cannot pay any bills. My missus is a full time nurse earning £30,000 and we have one car between us which she paid cash for 4 years ago. My main target is too just basically double the existing loan payments, pay my shotgun off which will be end of jan, and then its just the mortgage.

pinkarsenalprincess

You have £4000 of debt plus whatever you have left on finance. Why on earth would you take another £3K finance agreement out? If you could afford those repayments each month you should be paying off more on the loan, or putting the money aside each month to save for your 'toy'.

molerat

To put a perspective on it, if you fall off the bike and break your neck how much have you got in savings to pay off the loans ? You should have around £14K (3 months earnings for when !!!! happens) between you, if not you are living close to the edge.