Loan or not to loan?

reddev1990

I am a 20yr old engineering apprentice working 36hours a week and earning £480 a month. This seems really not too bad for a girl of my age still living at home...but doing my calculations allows me only about £120p/m to spend on myself after all my travel expenses, rent and car upkeep. I do feel I am very money concious and dont splurge out on silly spending sprees and i DONT like relying on my parents as i need to start fending for myself.

Im planing a small holiday with my boyfriend in the summer and have been considering taking out a loan or opening my first credit card, as there is NO WAY I can save any money.

My pay does rise after my 1st yr to £540p/m and then again on my last year to £600p/m and after im out of my time(in 2 years) to almost £1000p/m.

My question I need help with is; because of my rise in pay each year is there a loan or credit card that allows me to pay off £1000 over 3 or more years?

p.s i am on day release to tech so technically i am a part-time student, am i entitled to any sort of student loan?

please help!

Peelerfart

you work 36 hours a week and are paid £480 per month ? That's about £3 quid an hour!

Are you sure ?

reddev1990

yep im serious! its pitiful

CLAPTON

running a car with an income of 480 pm is a expensive luxury; why do you have a car?

borrowing simply for a holiday is extremely unwise

just live within your means; have a cheaper holiday

Peelerfart

reddev1990 wrote: »

yep im serious! its pitiful

It's not pityful,it's illegal, how do they justify paying you less than the minimum wage?

paddyrg

reddev1990 wrote: »

yep im serious! its pitiful

And possibly illegal too! What do you work as, if you don't mind me asking?

As for taking a loan - NO. If you can't afford to save, you can't afford to repay a loan. Please don't get yourself into a lifetime spiral of debt for the sake of a fortnight in Thailand, or anything. Camping is still dirt cheap ;-)

BackOnTrack

If you have £120 per month currently to spend on yourself once you take out a loan for £1000 that is likely to be reduced to at least £85 (based on a £1,000 loan over 3 years at a rate of 15% apr). I guess you have very little credit history so you may find it hard to get a loan at all and if you do it may be substantially higher than the 15% which would further increase you monthly repayments.

I would forget the loan or credit card idea and consider a part time job in addition to your apprenticeship, maybe bar or supermarket work. If you get another part time job it might be an idea to get a credit card as this might help build a credit history for futrue thigns like a mortgage.

BackOnTrack

Peelerfart wrote: »

It's not pityful,it's illegal, how do they justify paying you less than the minimum wage?

If your on an apprenticeship the minimum wage doesn't apply.

£2.50 is the minimum wage for apprentices.

http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201

Peelerfart

BackOnTrack wrote: »

If your on an apprenticeship the minimum wage doesn't apply.

£2.50 is the minimum wage for apprentices.

http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201

Well I never knew that! the conning bar stewards!

reddev1990

I have no time for another job during the weekdays and have tried very hard for the past 5months to get a w/e job else where but no joy.

BackOnTrack

Peelerfart wrote: »

Well I never knew that! the conning bar stewards!

Seems better value than the £40,000 a degree costs these days