Unsecured loan newbie

edinburghian_2

Hi,

Apologies if I ask ridiculous questions. I am trying to guage the likelihood of all of this and make sure I have the appropriate financial knowledge before I go ahead.

I need to borrow £25,000 for elective surgery.

I earn £25,000 a year and get bonuses on top of that.

I am in my first job and have been working since last summer of 2010.

I went to a good university and got a good degree. I have a student loan of course and don't know how this will affect the unsecured loan.

I don't know what my credit rating is. Things that might have affected it is that I went over my overdraft limit several times with Barclays after graduation and ended up paying about £500 in bank fees. This is no longer a problem as I have now started to pay my student overdraft off and head rapidly back into the black. Otherwise I've been banking with Barclays since I was 7 years old and have never had any problems.

I have never had a credit card. Would this affect my credit rating negatively? Would this be an alternative means of getting the £25k?

I do not own property but live with my parents and don't pay any rent, and will continue to do so for the foreeable future. I do not pay for food or clothes (and yes I realise how lucky I am!)

What are the dangers of this? What should I watch out for? What is important to me is a loan that I can get for as long a period of time as is possible (i.e. 6 years) but one I can pay back early should I be able to afford it. Is this possible?

Any advice would be greatly appreciated.

Many thanks,
Gweneth

Emmzi

you have less than a years employment record, you want to borrow 100% of your gross salary, and you have no real assets.

I think you can see where this is going.

If it is elective surgery you do not *need* it.

If you need eg cosmetic/ gender reasignment surgery for mental health problems, you need an NHS referal to a psychologist to begin with.

Otherwise I am afraid you'll need to save and wait, unless the surgeon has a payment plan they will accept you on.

edinburghian_2

Emmzi wrote: »

you have less than a years employment record, you want to borrow 100% of your gross salary, and you have no real assets.

I think you can see where this is going.

If it is elective surgery you do not *need* it.

If you need eg cosmetic/ gender reasignment surgery for mental health problems, you need an NHS referal to a psychologist to begin with.

Otherwise I am afraid you'll need to save and wait, unless the surgeon has a payment plan they will accept you on.

Ok so would my other option be to wait until I have been earning for one year? Would that make much of a difference?

Would I be able to get a similar amount of money on credit cards?

I am fairly sure mental health problems (which I don't have!) plus a risky loan don't go hand in hand!

Emmzi

a reasonable guildeline is no more than a quarter of income on unsecured loans. So you need to be working a lot longer and earning a lot more.

if your outgoings are as small as you reckon, if you save like a mad thing you could pay for it outright in 2 years.

edinburghian_2

Emmzi wrote: »

a reasonable guildeline is no more than a quarter of income on unsecured loans. So you need to be working a lot longer and earning a lot more.

if your outgoings are as small as you reckon, if you save like a mad thing you could pay for it outright in 2 years.

Ah yes I know, but it was about timing. It needs to be done very soon, ideally this summer, and I was hoping to pay the loan off in two years. I then was hoping to go back to university which is something my parents will pay for. Do you have any alternative suggestions?

Emmzi

edinburghian wrote: »

Ah yes I know, but it was about timing. It needs to be done very soon, ideally this summer, and I was hoping to pay the loan off in two years. I then was hoping to go back to university which is something my parents will pay for. Do you have any alternative suggestions?

If it NEEDS to be done rather than you WANT it done, NHS.

If you WANT it done a) ask the surgery or b) bank of mum and dad.

Think that's your lot really. Legally anyway!

Derivative

Not that you don't already know this, but to add an opinion:

Let's pretend someone actually lends to you at 7-8% (typical rate currently). I don't see that happening.

I would be extremely careful about taking out such a large loan so early in your career. It may be that you're considering it for valid reasons (cosmetic surgery for a model to increase potential?) - but consider that if you're redundant for a period of time, you're going to be in serious trouble. Besides that, everything you spend money on is going to increase the interest on that loan. You'll be giving away at least £5k, more realistically a multiple of that, to noone.

bouncydog1

I guess you are in your early 20's, which is very young to be spending £25k on elective surgery unless there is a real health reason for doing so.

If there is a real reason for doing so, then you should probably investigate whether the NHS will cover. If you are hoping that the surgery will sort out other areas in your life where you may have issues, please ensure that you get adequate advice and support before you go that route.

There are many documented cases where people have been persuaded to spend large amounts of cash having surgical procedures which have been an aboslute disaster.

Please think carefully before you go this route - £25k is massive on your income, particularly as you haven't got anything else behind you to fall back on.

KingElvis

Wow, 25k is a lot on your income, there will be no hance of that I'm afraid.

I have to ask, what on earth costs 25k?

PNPSUKNET

remeber that if you dont keep up on payments, they may repo the inplants lol

Apples2

edinburghian wrote: »

I am fairly sure mental health problems (which I don't have!) plus a risky loan don't go hand in hand!

Are you sure??

Apologies for the tone but surely £25k can only be to change you into a woman! Your username suggests you are a bloke called Ian (maybe I am wrong)

You have been working for only 6 months but are planning an absurdly difficult procedure which will lead to extended periods off work. Does your employer know who they have taken on??

I've worked in places where men have gone through the change and they are off work more often than being in work. This goes on for a year or more.

You have NO baseline to understand how you manage your funds (neither the bank, or you personally) yet here you are expecting a years salary in one lump (to spend on two lol).

I think you really need to sit down with someone (which is all part of the course).


If it is for any other kind of surgery (teeth, ears, nose etc), then your plans are simply madness. In the long term for you, is unlikely to happen anyway so you aren't going to end up crippled with silly debts when little more than a child.

Definitely sounds like WANT over NEED.