Graduate Loan - Wedding

StuTheDon

I agree, it is utter madness but at the end of the day the guy is an adult, over 18, and I'm sure he has thought this through.

Own bank is the way to go but it may be a struggle given debt to income ratio

McKneff

tonycottee wrote: »

Welcome to MSE. As you can see op from the 4 replies you've been given only one actually gives you any decent advice. Not a bad return!
I agree with Stu, and your bank should be your 1st stop.
I don't know much about graduate loans, but at a quick glance their apr seems higher than a personal loan.

er 'scuse me, it was all decent advice,

Giving advice about not getting into debt is pretty good advice.

sr1_2

I understand that debt is not the way to go forward with, however I have planned how I would make re-payments. Going forward my salary can only increase, and I am expecting this to increase in the next 2 years, which would make it much more affordable.

I shall try apply with my bank, and if they don't approve, who is the next best person to contact?

HSBC graduate loan is at 7.9%, but depends on individual circumstances. The good thing with the HSBC loan is that I can pay the loan off earlier, without incurring a penalty.

I think it will take about 3 weeks for the cleared credit card balances to appear on my credit file, so I will wait for that and then apply for my loan.

What is an ideall debt/income ratio, when applying for loans? What would you suggest an ideal value I should apply for to be accepted for a loan based on my income of £28k? Will it go against me that my income is based on 2 jobs?

Apples2

As a general rule, lenders don't lend if it will put you over 50% of your Salary as unsecured debt. In your case £14k

That it total exposure though so you need to add up not only your current debt, but also your credit card limits.

If your bank (who can see your entire history of how you manage your account) say no. It is unlikely to happen elsewhere.

[Deleted User]

sr1 wrote: »

Going forward my salary can only increase

I'd be very cautious about that assumption. A couple of bouts of redundancy have taught me that salaries can go down as well as stagnate.

ViolaLass

sr1 wrote: »

I understand that debt is not the way to go forward with

So why are you doing it? If you're borrowing £11k, it suggests the total cost is higher because chances are you're not paying for everything yourself. Do you feel you have to spend this much?

however I have planned how I would make re-payments. Going forward my salary can only increase, and I am expecting this to increase in the next 2 years, which would make it much more affordable.

Fingers crossed you're right - what if you lose your job, are made redundant, your company goes under, taxes go up, you have another large unexpected cost, your salary doesn't increase or even decreases? Do you have an emergency fund?

sr1_2

Hopefully I will not lose my job and will be able to progress in the next 2 years.

50% debt of salary is all i'm entitled to means i will not be approved the £11k, because i have £2k available on cc#s, and another £3.5k available on overdrafts???

Any idea's of what to do, should i fail to reach a £11k loan?

ViolaLass

sr1 wrote: »

Any idea's of what to do, should i fail to reach a £11k loan?

Spend less on your wedding.

Trajal

How about an SoA of the wedding costs then? Because honestly, I'm having a wedding next saturday and we haven't spent anywhere near that.

We also are having a full white church wedding, and a reception in one of the top hotels in wales. You need to shop around a bit mate. We haven't scrimped at all really, tried to but kept on spending out on stuff, however we did shop around a lot for absolutely everything, and argued for freebies/discounts everywhere also.

Break down what that 11k is being spent on and I'll see if I can help

mrs_B_5

I too would be keen to see a SofA for the wedding costs and I'd pretty much guarantee we could cut down some of the costs!!! If myself and my partner had £950 spare cash a month (between us, let alone each!), which is what the OP indicates, we'd be laughing!

When is the date for the wedding? And why do you not have an option to delay it? There aren't many reasons I can think of.

If you've booked everything before realising you haven't the cash to pay for it, making it difficult to cancel things, then maybe you need to start thinking about cutting your losses and loosing some deposits as opposed having to shell out the full amount on something you really can't afford.

I still think that if we see the SofA we'll be able to help reduce the cost of the wedding for you, which in turn will reduce the amount of loan you need. Meaning if you really want to take this loan out, it hopefully won't need to be as big.