Advice needed llyods strange loan situation

SparkyMark123

Hi took out a loan with tab 10 days ago. Tried online got accepted tried for higher amount and said to ring office. Rang up got accepted for 8000 consolidation paid off quite a few debts and me and partner now 600 p/m better off.

Now the strange part 5 days after this received a marketing letter from llyods and when logging onto Internet banking the offer of the original loan 5500 is still there as accepted and asks if I want this.

Would I be able to take this as it states approved or will the bank stop this as I only took out a loan 10 days ago.

Many thanks in advance

FireWyrm

You have taken a loan? You have consolidated (good luck with that...many fail) all your debts into one loan and now you want to take advantage of another loan that was offered prior to this one?

Are you mad? Why would you want to add yet another £5000 to what you already owe...it isnt like it's free money, you'll be paying interest and fees and what not on that.

mummybearx

Why would you want the second loan?!?

You admit that you are circa £600 a month better off than you were. Why not save this money to buy things? Save it up and pay off the loan early? Save it and keep for a rainy day/boiler exploding/kids needing new shoes etc etc etc

SparkyMark123

The 5000 would more than cover the cost of a wedding booked next year as we need 6000 saved in 11 months and don't want to be touch and go

The new loan would be 140 between me and my partner so we will still be 450 p/m better off.

paulmcerlean

Be careful, with a wedding, not to rack up the original debts on the cleared accounts from the loan or you will end up £600 worse off per month in a while.

I dont think Lloyds would process the second loan. You can have more than one, but I wouldnt be sure it would work.

FireWyrm

SparkyMark123 wrote: »

The 5000 would more than cover the cost of a wedding booked next year as we need 6000 saved in 11 months and don't want to be touch and go

The new loan would be 140 between me and my partner so we will still be 450 p/m better off.

Delay your wedding.

A) you cant afford it directly without borrowing
You dont need £5K to get married at all - many do it for less than half that and by saving £600 a month from now, you'll have all you need very shortly anyway
C) Consolidation loans rarely work - mainly because no sooner have you 'consolidated' than you end up taking out another loan....almost exactly what you are suggesting doing by the way which completely negates the point of 'consolidation'.
D) Your eyes are bigger than your stomach. Sooner or later, rates will go up and the cheap money will run out. You will be stuck with a loan you can no longer afford to service all because you didnt save'
E) The universe likes kicking people - you take out a loan, spend it all and I can almost guarantee that a week later, the boiler will break etc.
F) Neither bank will be pleased with you when they find out. It's profligate and the chances are, you would have been turned down for one or the other if they hadnt co-incided.

clangnuts

If you're £600 a month better off with new loan, can you save this over the next 10 months? That way, you'll have the wedding you want, and will be far better off financially as you start married life, without another loan around your neck.

SparkyMark123

A- not an option date set deposits paid- non refundable
B probably true
C this will work its only the same as borrowing 13000 in the first place
D the rate is fixed monthly payment Etc for ten of the loan.
E. agreed but we wil still be saving out of the 450 p/m we are better off
F It's the same bank I was asking originally am I still eligible

FireWyrm

SparkyMark123 wrote: »

F It's the same bank I was asking originally am I still eligible

Why dont you ring them and ask? If you were certain that they would have lent you £13000 to begin with, there's nothing to lose...is there...

However, I suspect you know that this isnt exactly the case. The bank made their decision based on the fact that you wanted considerably less. Now, you have a consolidation loan (hmmm) and now you also want another loan....

DevCoder

You are completely mad (sorry to be brutal).

As mentioned consolidation loans rarely work as it's an easy cop out, you don't tend to have that LBM and realise just what trouble you can get into debt. The credit lines are there to be re-used (which is exactly what you are doing).

Be glad you are 600pm better off, use this for the wedding, do not take out another loan as this will just end up in tears.

DevCoder

And cut up the credit cards if they were the original source of the debt, or reduce the overdraft or credit lines. Otherwise you will just be tempted to respend the consolidation monies. You are already considering another loan.