Loan APR help please - in shock...

BoGoF

So now part of the loan is to clear an existing loan? Like I said earlier the full picture helps.

Look at it from the lenders point of view, you earn £75k a year, have 2 credit cards, a loan and are in overdraft........do you honestly think you seem like a good bet. Hope this doesn't sound too harsh but that is the reality of the situation.

You haven't said how much your existing debt is but reading between the lines it seems pretty high.

zoobyzoo

BoGoF wrote: »

So now part of the loan is to clear an existing loan? Like I said earlier the full picture helps.

Look at it from the lenders point of view, you earn £75k a year, have 2 credit cards, a loan and are in overdraft........do you honestly think you seem like a good bet. Hope this doesn't sound too harsh but that is the reality of the situation.

You haven't said how much your existing debt is but reading between the lines it seems pretty high.

Yes what you are saying makes sense, what I was wondering was what the best route would be from here on in. I still feel I would be better off financially if I were to change my car, but clearly I will have to wait some months (how many?) before it would be sensible to reapply.

I do have debts, but having received a bit of a flaming already I'm a bit loathe to post the details... I am aware that my financial situation is not good despite my salary, but it can be quite off-putting when people are really quite judgemental towards someone asking for genuine advice in a tight spot If it helps put this into some kind of context I support my parents financially who are unable to to fully support themselves.

BoGoF

My suggestion would be just to concentrate on your existing debts. Everybody who is seeking consolidation loans always says I'll be better off but it's not quite as easy as that.

Whether you take the offer on the table is up to you. If you were to go ahead how much could you sell your existing car for?

zoobyzoo

BoGoF wrote: »

My suggestion would be just to concentrate on your existing debts. Everybody who is seeking consolidation loans always says I'll be better off but it's not quite as easy as that.

Whether you take the offer on the table is up to you. If you were to go ahead how much could you sell your existing car for?

I've been offered between £4750 and £5250 depending on condition by one garage part-exchange. This was over the phone, and I suspect that a formal valuation would be towards the lower end of that range. However, my existing car loan would cost £6226 to settle (hence the additional borrowing to cover the balance).

BoGoF

It's not an easy call but I don't think I would take a loan at 16%, but you never know !!

My advice would be to concentrate on getting rid of that o/d first and save money on fees in the process.

You said you will have cleared your CC debt by the end of the 0% deal - how long do you have to go? How long to go on the loan and what APR?

If you feel like exposing your outgoings to MSE then I suggest you pop over to the Debt Free Wanabee board and post up a SOA.

ps I hope I haven't been too judgemental......

Emmzi

when we used to do lending "by hand" some of the files were marked He/HS - DNL

High earner - high spender - do not lend

We'd never get the money back, went through the hands like water.

There'll be an automated version of that these days.

Is that you?

zoobyzoo

BoGoF wrote: »

It's not an easy call but I don't think I would take a loan at 16%, but you never know !!

My advice would be to concentrate on getting rid of that o/d first and save money on fees in the process.

You said you will have cleared your CC debt by the end of the 0% deal - how long do you have to go? One of the CCs will be paid off by November 2012, the other by March 2013 How long to go on the loan and what APR? November 2013 @ 6.6%APR

If you feel like exposing your outgoings to MSE then I suggest you pop over to the Debt Free Wanabee board and post up a SOA.

ps I hope I haven't been too judgemental......

No, you've been very honest and constructive - Just want to thank you again for both of those things

zoobyzoo

Emmzi wrote: »

when we used to do lending "by hand" some of the files were marked He/HS - DNL

High earner - high spender - do not lend

We'd never get the money back, went through the hands like water.

There'll be an automated version of that these days.

Is that you?

Well probably the first part is true, though have had several loans in the past (now paid off) - never once defaulted on payments! But that's certainly food for thought, thank you.

BoGoF

I know that November 2012 and March 2013 probably seem a lifetime away but if you intend having the balances cleared by then I assume you are paying more than the minimum payment? How much a month will you be better off when these are cleared?

Similarly with the loan, even though you monthly payments would overall reduce just think of the interest saved in the long run if you could see it through.

zoobyzoo

BoGoF wrote: »

I know that November 2012 and March 2013 probably seem a lifetime away but if you intend having the balances cleared by then I assume you are paying more than the minimum payment? How much a month will you be better off when these are cleared?

Similarly with the loan, even though you monthly payments would overall reduce just think of the interest saved in the long run if you could see it through.

Yes, am definitely paying off more than the minimum - in total I am paying off £200 per month for my credit cards. However one of the credit cards is for my car insurance which I pay annually, and so will be a rolling yearly thing. This was around £1000 this year, and will go up substantially very soon (for reasons which are very much my own fault)

Was a bit confused about the second bit though, I think you mean to stick with my current car and not take a loan?