Personal Loan big day.

Tom_Saunders

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TBeckett100

Excellent,you remind me of those adverts for Picture Loans or Purple Loans. The family are hard up, they consolidate the bills on the never never and the wife goes, "oh we can have the dream holiday". Doh.

I think a whole years repayments purely on a holiday would be very silly. Pay the money back off the loan and save 7 years interest for starters. dont be foolish. 7 years is a long long time to be paying off a holiday and believe me circumstances change and a big debt can be stressful.

Acknowdledge debt is bad and lear a lesson.

:T

TBeckett100

ok you sound solvent. enjoy the hols

bengal-stripe

Tom_Saunders wrote:

We are not exactly hard up £250,000 house, £100,000 mortgage....not many familes on TV can get loans for 6.1% and have an A1 credit rating.......

What do they say about fur coats and underwear?

jonesMUFCforever

From your postings you owe at least £115,000 and your house is worth what someone is prepared to pay for it.
You may well be solvent now but the future??
(Will your car(s) last 7 more years or will they need replacing,any extensions or refurbishments planned in next 7 years??)

CLAPTON

as i see it

currently you are paying out £5 + £130 = 135 and have converted that to a loan costing 220 per month

now assuming you are currently spending all your income that means you will be 85 per month short (220 - 135).
so at the end of the year you will be £1,020 short . and because you need something to look forward to you will need to borrow 2000 for next years holiday so you will need to borrow 3,020 (well with interest a bit more in reality) ..now the year after you will be a bit short by.................

thesaint

...House price will rise, so that will more than make up for the loan that will be needed next year.

kuohu

The problem with moving debts from credit cards into loans is that people then feel better off and start a cycle of spending more on the credit cards again. Before you know it, you've suddenly got the credit card debts to deal with *and* the loan repayments to find. Moving the debt into a loan doesn't deal with the core issue - overspending or not budgeting.

I'm not saying this will apply to you, indeed I hope it doesn't and that you chop up those credit cards when they are cleared. But it is a slippery slope and I bet if you posted this on the Debt Free Wannabe board then you'd have similar responses.

My other thought was that 7 years is a long time for a loan, especially when £2k of it is on non-essential spending like a holiday. A quick look on https://www.whatsthecost.com reveals that the £2000 holiday will actually cost you £2462.30 - almost 25% more - when you add the interest over such a long term.

Just my thoughts anyway, and I wish you all the best.

cifpower

I would have stuck a lot of the extra loan amount into an ISA or other high interest account and spent the rest on a holiday instead of buying a holiday worth £2500.

Just my tuppenth worth!

Tom_Saunders

thanks for all your replies. The extra £80 is a worry to me. However it's great to have an MBNA card and pay just £5 but the debt never reduces (obviously), I must be like millions of other MBNA customers, it's all just a big trap really.

Appreciate ALL the advise, cheers.

macca64

But you are not forced into paying £5 a month to MBNA are you?? Why not pay MBNA the extra £85 a month while it is interest free until June, then take out a smaller loan. Would then reduce the loan needed by over £500.