Loan best option?

ML221

I'm just finishing university and like all students I have the typical baggage. Coming out of uni I will have two overdrafts, each a 1000 and I'll have the remainder of the rent to pay before moving home which is 900. I'm currently working at the university but will cease when I stop being a student which is in 2 months time.

I've been thinking recently about my options, when I finish uni I will need some money to get by until I find a job this to pay bills etc. So I thought a loan would be a good idea, then thinking about it I thought If I took a personal loan of 3-4k over couple of years to tie all of my loose ends which would mean closing my overdrafts, paying the rest of my rent, having enough to pay the bills to avoid bank charges and having some money to live off till I get a job, would this be the best option? I'm wanting a better hold on my financial life now I've finished with uni and I like the idea of only having to pay back a small amount every month to my personal loan than having many loose ends I can't keep track of.

Any thoughts or suggestions would be much appreciated, or if anyone has been in a similar circumstances.

Thanks

Apples2

Great idea but can you demonstrate an ability to repay a loan?

ML221

I would like to think so, turning over a new financial leaf and at the moment I feel like Im in the deep end with what to pay. Anyone recommend a length of time I want to be looking at or suggest any good loans out there, I've been looking at the post office.

CLAPTON

what is your income?
a loan company will wish to be repaid?

when you finish at Uni presumably you will live cheaply at home until you get a proper job; you will be able to claim JSA; why do you need a loan?

Apples2

Your own bank know you better than anyone as they can see how you manage money.
Even working you have managed to go overdrawn to the tune of £2k plus you need another £900 so you are in effect £3k in debt.

There is a real chance that as soon as your overdrafts are cleared, the O/D facility will be withdrawn so you may no longer have an overdraft to fall back on.

Your working Salary thus far, is not enough to support further borrowing so demonstrating that you can comfortably repay appears as if it is going to be a struggle.

It may be the better option if you are going back home to borrow the £900 (from Parents??) and live like a errrr Student lol.
With reduced outgoings save like crazy to clear down those overdrafts.

It will cost you a lot less in the long run as you won't be paying all that interest on a loan.

If you are determined to take a punt at a loan, try your own bank first. If they say no, forget the idea for now.
Too many applications will have a negative effect on your future chances of success.

If your bank say yes, have a quick shop around for another to compare interest rates.

ML221

Cheers for the advice, I done the whole living like a student now I've finished uni. Lending the 900 off the parents isn't possible due to other circumstances, I am interested in just paying the rent off for now, is it just worth paying off the rent with a personal loan of credit card, also the idea was I'm looking for a job so my income is going to change from what I'm earning now, should earn alot more.

Apples2

They won't take into account a determined effort to find a job unfortunately, you have to demonstrate (with payslips/regular deposits into your account) that you can afford it (about 3 Months worth).

IMO opinion, you would be better off weathering the storm until you have found employment.

A Credit Card may be an option as minimum payment on £900 is going to be achievable. Just ensure you are desciplined enough to stop yourself spending anything else on it (don't underestimate how hard this can be!)

paddyrg

Maybe ride it out for now until you finish, then just take all the work you can find doing bars, cleaning, fruit picking/whatever until you are back to broke... then plan from there. As much as you imagine your first 'proper' job as future riches, it won't be as tax will become a reality, and jobs using your degree may be harder to come by than you think - which would really screw you with a loan.

ML221

CLAPTON wrote: »

what is your income?
a loan company will wish to be repaid?

when you finish at Uni presumably you will live cheaply at home until you get a proper job; you will be able to claim JSA; why do you need a loan?

Need the loan to pay the 900 rent I owe then I thought it may be agood idea to lend abit more to pay some outgoings while looking for a job