pay off to borrow again?

farhadhussain

hi there fellow savers..
ive got a question and would like your advice.
im getting married in september:beer: this year and would need atleast 10k to get me through all the expenses(which includes clearing my OD, CC and a zopa loan) to start fresh.

Im not looking for a loan for bad credit so please do read on.it might sound like a bad credit question which has been countless times on this forum but its not,but id appreciate any help.

my credit rating is not very good at the moment although i have been on my address for a more than 4 years and in this job more than 3.ive never missed a payment as well on any of my phone and utility accounts or cc accounts. i think its due to the debt-credit ration of my credit file which I believe is more than 90% and ideally it should be less than 70% but here where i need your help.

Im getting my bonus in this months pay(John lewis) so is it good idea to pay off atleast a grand in between 3 credit cards and loans and wait for a month so the CRA system updates and my debt ratio is more acceptable to lenders? i think i shud be able to get the ratio down to less than 60%-70%.

so what do u guys say?:)

whatyadoinsucka

don't get married, pay off your debt and save up..
never get married on credit, if it ends in tears, you'll be reminded every month when you have to repay your monthly repayment.

CHR15

How on earth is getting a 10k loan going to leave you "starting fresh?"
You will be buried in debt, not fresh at all.

You are not looking for a "loan for bad credit", yet you have bad credit??

Debt to income should be nearer 50%, not 70 and certainly not 90.

No lender is likely to touch you, which will be a good thing for you.
Clear your debts completely then save up for your party.

I find it amazing that people who do save, wouldn't dream of blowing all their savings on a one day party yet people are happy to get a loan and repay heaps more for many many years to follow.

Poosmate

Chri5, I may be wrong but I think the 90% Farad refers to is 90% debt of his credit limit, so simplistically, he's 9k in debt with 10k credit and £1k available.

Farad, paying off your debt (as much as possible) with your bonus is definately the first thing to do. Pay it towards the debt with the highest interest rate. If this is the CC then that will bring down the minimum payments. Work out how much you are paying towards your debt each month now then as the minimum payments reduce keep paying the same amount (or more if you can). So say you are paying £100 towards your debt now and paying your bonus off one or more of the debts brings those minimum payments down to £90, keep paying £100 - you are used to paying that amount anyway so you won't miss that extra £10.

I would agree with others, that taking out a £10k loan to clear debt and get married is not the best way to go especially if you are living in your overdraft and relying on credit cards. Believe me, I've been there and got the T-Shirt! The only way to do it is to stop using the credit card and reduce your spending and pay as much off the debt each month as possible. Don't worry about what anyone else thinks about your sudden lack of spending, afterall, you are saving for your wedding! People will understand that and by the time you are married people will be used to the new you and you'll have different priorities for your spare cash then anyway i.e. your family's future.

Don't get a loan to cover your debts, you won't get a good interest rate as it will be seen as a debt consolidation loan. If you absolutely have to take a loan to see you through the wedding, make it just that, enough to get you through the wedding!

Good luck,

Poo

Fiddlestick

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farhadhussain

Thanks for all your help guyz .just to clarify ive got abt 1500 to clear after paying 1000 from bonus for my debts.i need to get atleast 5k of gold for my wife to be which will prob be an asset for bad times im worst case scenario.1.5k to clear my remaing debt and 3.5k for a small party and initial expenses such as rent deposits,honeymoon etc.
The thing is me n wife will hopefully get another decent bonus next march which we will use to clear the new loan.ill also get approx 5000 from friends and family after the wedding which im not touching a:money:s I want to gather up deposit for my flat.

I just want to have the best possible wedding as I dont see myself separating from her even in a 100 years lol.so this is like a short term solution to my temporary bad credit.i still think im better off than many ppl who are in massive debt but just bcz they got so many cc with limits managed to give a false impression that they are in control.

Thanks again everybody

paddyrg

Don't borrow for a wedding - it means starting your new life together trying to bail out of debt...right at that moment when you are likely to start adding new cost centres to your family ;-)

Financially, clear the most expensive debt first, that will be the cheapest option.

But in terms of cash flow you may want to keep some *savings* on hand for unexpected bills, etc - a couple of grand you never dip into should do it just as a buffer, then use whatever is over to clear debts.

Edit - gold - make sure you don't pay much over the actual metal price and it will have some buffer value - avoid jewellers selling retail new, as you will pay well over the odds.

Apples2

farhadhussain wrote: »

need to get atleast 5k of gold for my wife to be which will prob be an asset for My Wife when she legs it with Gordon bad times im worst case scenario.1.5k to clear my remaing debt Although a loan doesn't clear anything, it just moves it somewhere else and 3.5k for a small party and initial expenses such as rent deposits,honeymoon etc (Hope you realise how long you will be repaying this little knees up).


I just want to have the best possible wedding as I dont see myself separating from her even in a 100 years lol (nor did the rest of us who split up after being taken for all we have!!).so this is like a short term solution to my temporary bad credit.i still think im better off than many ppl who are in massive debt but just bcz they got so many cc with limits managed to give a false impression that they are in control (sorry dude, you are going head first into making exactly the same mistakes those guys did who you slander.).

My comments in red, please get your head out of the clouds, you are heading for a fall....

farhadhussain

oh thanks apple for your kind words
i think ill manage. maybe ur a person who believes more in facts and numbers which I agree do prove people split rather quickly after getting married.but if you do look a bit more in depth, certain cultures do not allow you to walk away like that, I am thankful I belong to one of them and so does she. even before the thought of separation comes,there will a million thoughts involving millions of things such as family,kids,responsibilities. neither of our families has had a divorce in about a few hundred years traceable history.

I think some people need to be more positive in this pessimistic world. i can say the same for all people who take out mortgages knowing they might be out of work,risking their families on the road? but surely many of them plan and things work out in the end.

lifes too short to moan hence ill stop :j