need to borrow £6k - help

myright

Okay a friend needs a loan.

Needs to borrow £6000.

Earns £900 per month.

he will be able to pay back £250 a month back.

Credit history is pretty decent and has no ccjs etc.

Whats the best options for him?

opinions4u

Whats the best options for him?

Applying for a loan.

myright

what kind of loans are available? and how would he go about it?

what kind of intrests rates should he be looking for? and time frame of repayment? and is it easy to obtain that sort of loan?

CLAPTON

assuming he has no other debt then he wants to borrow about 50% of his annual salary
that is a pretty high ratio and he will probably find that difficult

why does some-one with a low income want to borrow so much?


with 250 spare how much has be saved up over the last year or so?

Macca83_2

Myright - if he really knows that little about a personal loan then i don't think its the best option for him. Interest rates are subjective. They are calculated on a number of factors including, salary, time at address, time in employment, any future changes in circumstance and any current borrowing. This list is not exhaustive. The best time frame for a loan is to pay it off as soon as possible because it will cost less overall. But at £900 a month salary i can't see many lenders jumping at the chance to extend credit to your mate

myright

he needs to pay some existing debt i believe

Macca83_2

What's the loan for? Who does he bank with? He can try lenders like nationwide who Will do a soft search and give him a quote without leaving any mark on his credit file. But really if i was his mate i wouldn't advise it.

myright

he's got other debts he needs paying off. but ive adviced him not to do it.

but he's set he wants to.

Macca83_2

Are the debts with one provider or across a couple? I take it he owes around 6k? Best get him to post a soa on the dfw board and see if they can help him with cut backs

Caz3121

myright wrote: »

he's got other debts he needs paying off. but ive adviced him not to do it.

This could make getting the loan very difficult. The normal quoted debt to income ratio is 50%. It sounds like he could already have that so he is not going to be able to get any additional borrowing
Although the reason for the loan may be to pay off existing debt, there is nothing to stop someone taking the money and not paying anything off so the total debt would be old debt+new debt which sounds like it could be more than their annual income

Catherine_Johnson_2

Best option would be to use the £250 per month to pay off the existing loans rather than take out another loan.