Lloyds tsb risk band

Thrugelmir

YorkshireBoy wrote: »

Re using the overdraft to clear the loan...yes it would be cheaper (a lot cheaper!) but there are a couple of major pitfalls:


1. Overdrafts are repayable on demand (unlike a loan which has a defined payment plan). If they ask for it back and you can't repay it within, say, 30 days, then your credit file will be trashed.


2. There's generally no servicing requirement for an overdraft (other than paying your salary into the account), so you're not forced to reduce it like you are with a loan. For this reason you need a lot of willpower!

OP appears to have a wish list of want it now items. So really amounts to a personal decision. Rather than a financial one.

opinions4u

Jasonlucas93 wrote: »

hmm i guess but would you not agree that if i can get offered a loan with my bank at 6.4% apr and pay off existing debt which the amigo loan is at 49.9% apr, then maybe that would be better?

In theory, yes.

In reality it's all part of the approach an unhealthy debt junkie takes.

You end up borrowing a bit more. Then a bit more. Then you restructure. Borrowing a bit more. Repeat until it all becomes just a bit too much.

Focus on clearing the debts you have. Saving money up. Avoid borrowing again. You will live a wealthier life.

Jasonlucas93

hmm guess I do need to consider that option -.- even though i have no Willpower to save!! Been trying to save for the last year now!! Cash Isa Balance: £3 christ

opinions4u

Jasonlucas93 wrote: »

hmm guess I do need to consider that option -.- even though i have no Willpower to save!! Been trying to save for the last year now!! Cash Isa Balance: £3 christ

It is about will power.

You're not the only person on the planet who has this problem.

But if you really want to you can choose to solve it. You'll be far better off when you do.

BMN

Jasonlucas93 wrote: »

hmm not even if part of the loan was to pay off existing bills...
cause even though it's not certain lloyds have agreed but not until the 'ability to pay' goes away but that could be months... it would work out so much better because the loan calculator on the website (even though isn't 100% true in some cases) 10k over 5 years i would pay £194 a month

so that would be £920 (my wage) and bills 80+60+194 = 334

920-334 which still leaves me £584 for the month :O

Jasonlucas93 wrote: »

well i phone bank up to ask about it and it was 'ability to pay' basically they told me its because when there system gets updated I end up only having around £40 in my bank account because its right before i get paid -.- so they've advised me to make sure i start showing them that i have the ability to have more money in my bank.

If that really is your monthly incoming and outgoings then how can you only be left with £40 in your account?

FLAPJACK

Open a savings account with Lloyds and set up a S/O to pay into it say £100.

This way you are saving regularly and should you need to you can get your hands on the money....but the idea is to pay into it and forget it.

From Lloyds POV you are building a savings balance with them, which proves to them that you are taking control of your finances and are being serious about it too.

Jasonlucas93

BMN wrote: »

If that really is your monthly incoming and outgoings then how can you only be left with £40 in your account?

Yep that's my income and all my outgoings, I guess it's due to bad habits, constantly spending money on junk etc, I was much better at saving when I had a part time job. Need to start getting into the mind set that I need to start saving.

Jasonlucas93

FLAPJACK wrote: »

Open a savings account with Lloyds and set up a S/O to pay into it say £100.

This way you are saving regularly and should you need to you can get your hands on the money....but the idea is to pay into it and forget it.

From Lloyds POV you are building a savings balance with them, which proves to them that you are taking control of your finances and are being serious about it too.

I have 2 savings accounts with lloyds, I've got a cash isa so I can start chucking money in there
And I also have an esavings account because I started doing 'save the change' and that's a savings I won't ever touch In the meantime.

RobertoMoir

Jasonlucas93 wrote: »

but why am I not entitled to a loan.

Nobody is entitled to a loan. There's any number of reasons why a lender might not want to lend a particular sum of money to someone; some reasons might relate to the borrower and some to the lender itself.

1DayAAT

A good savings tip that I did at your age was to have a direct debit set up to NS&I (Premium Bonds) going out a couple of days after pay day. I managed to save a fair bit this way and it wasn't too difficult to do because it just became normal to see it going out of the account and counting it as 'gone' even though it was going to a safe place. NS&I lets you have your money back at any time and is easy to manage so perhaps you can look in to that. Just make sure its an amount that won't leave you short.