Rejected a loan.. more detail contained within!

CLAPTON

advice is useless unless the facts are known

list each debt
how much are your savings?
how much do you save each month?
do you have a proper SOA (income and spending budget) for now?
what is your budget for when you are studying

lauraloubell

You are absolutely right here are the details:
Egg1000Car2557.67Halifax0Very 293.21

The egg debt is actually £1675 but they have agreed £1000 for settlement. The "car" loan is actually what I owe my boyfriend. I have applied for a loan of £4000 over 36 months.

I have £500 saved. This month I will save £2000 and I don't know how much I will save over the coming months as it depends on bonuses. I have done a SOA (don't have it saved) but it highlighted a few areas for saving which I have sorted now (i.e. got rid of my personal phone and laptop and use my work ones, cancelled lovefilm, cancelled graze boxes, better food budgetting) Whilst I am studying I have budgetted for paying a loan, paying £400 towards rent, £95 for my course and £200 a week spending money (to cover food and anything else for me and my daughter)

My income will be from childminding and will cover these expenses. The money I am saving currently will enable me to take the summer off and spend it recovering from the horrendous couple of years I have had.

DCFC79

Lol " take the summer off and spend it recovering from the horrendous couple of years I have had "

that bad was it

KingElvis

Not trying to sound awful but your life sounds chaotic, disorganised and a bit scatter brained...you have to remember that high street vanilla lenders like stability and consistancy, you display none of these?

Sorry if I offend but that's the way I read it.

Mara69

lauraloubell wrote: »

ALL my friends have credit cards and I feel like such a dumbo. My employers don't understand why I'm so worried about expenses, they're like "Just whack it on your credit card, you know you'll get it back" I can't admit I don't have one - I'm a 30 year old woman and mother. It's pathetic.

With all due respect, this is utter nonsense. You don't NEED a credit card to be a grown up and just because your friends have one....really????

As far as your employers are concerned, just tell them you haven't got a a credit card. what on earth are you talking about "I can't admit I don't have one" Why not? Tell them you CHOOSE not to have a credit card. I haven't got one and certainly don't lose any sleep over it!

scottishblondie

You should just pay off that Very account instead of saving 200 this month - the interest you will be paying is dead money, you need to get rid.

Apples2

lauraloubell wrote: »

Egg1000
Car2557.67
Halifax0
Very 293.21

The egg debt is actually £1675 but they have agreed £1000 for settlement. The "car" loan is actually what I owe my boyfriend. I have applied for a loan of £4000 over 36 months.

I have £500 saved. This month I will save £2000

This is ridiculous, it gets worse the more I read.

At the end of this month you will have £2,500 in savings to counter £1,293.21 in interest accruing debt (ignoring the car).

Clear the Egg and Very debts immediately.

I'm still trying to understand why you consider getting a loan a good thing. It is awful to have debt, of any kind. Haivng a loan does not "accept" you into Society.

I know plenty of people who do not own Credit Cards, they are the envy of those who are burdened with them.
If your Company expect you to incur business expenses, then they should provide a machanism for meeting those expenses. Worse case is an advance payment to you either as cash or directly into your bank (I have an ex BR working with me who operates like this).

lauraloubell

It was horrendous yes. I don't think that MSE is a place to debate mine or anyone else's mental health. I have made the decision as an adult to take 6 weeks out of employment to recover from a traumatic time and am trying to work out a way to fund that.

Maybe I should just leave my job and claim benefits instead?

I don't pay interest on Very. I use their "take3" option. Although I think you are right scottishblondie maybe I should just be done with it rather than save that money this month, if anything so it's just done with.

In the business I'm in I entertain clients often. I need to be able to pay quite a bit of money out and I couldn't afford to do that without a credit card. It is shameful that my peers are fine with this and I am not able to operate in the same way.

I must be in need of adapting my "forum speak" as I can assure you I am not scatterbrained.

lauraloubell

My debts aren't interest accruing. None of them accrue interest.

My company don't offer credit cards or upfront payments. They should have a better mechanism in place but they don't.

I don't really know how to explain it any better than that I could use my savings to pay my debts off... but then I couldn't afford to leave my job or take any time off in a few months. That isn't an option for me at the moment.

If anyone has any advice on where I might be able to secure a loan that is a reasonable interest rate and a reputable company but isn't somewhere that wants an excellent credit rating that would be great, there must be a middle market? thanks.

lauraloubell

I know that having a loan doesn't "accept" you in to society, but surely loans are there for sensible people who can manage finances but need some support during a difficult time.

Otherwise what are they for?