0 Hour Contract Loan?

opinions4u

ukjamesuk wrote: »

Hello,

I recently had an idea to take out a loan in order to pay someone back money that I owe them, and purchase a motorbike to get of bloody public transport.

In order to do this i'm going to need about £5-6000 and am looking to take the loan out for around 5 years, just to keep the monthly payments to a minimum. Will probably pay off the loan before the 5 years is up, but that's irrelevant.

I have applied for a loan with my bank and was highly advised to withdraw my application as soon as they heard '0 hour contract'. Even after explaining that I earn what i'd have to pay a month, in 1 day. Even what i'd be saving on monthly public transport is more than the loans monthly repayments too!

A loan with a bank seems to be the only loan you can get these days without terrible amounts of interest. I've looked at possibly getting a guarantor loan, but most of their websites seem to have the same theme as them bandit loan companies such as wonga, which rings alarm bells straight away. Plus all of their APRs that i've seen are around 50% which is still pretty bad, but affordable as a last resort i guess :S.

Is there any other option for me? Other then friends or family.

Any advice is much appreciated!

Start relying on yourself and stop relying on others.

1) Earn money.
2) Repay the other person from your earnings.
3) Don't borrow any money.
4) Save up some of your earnings.
5) Buy the motorbike with your savings - once you have them.

jamesd

A credit union looks like a good idea for your situation.

CherlokHomes

gb12345 wrote: »

It would be the OP's guarantor who is the one that could get the 5% elsewhere, but will end up paying 40% when the person he guaranteed for stiffs him and stops paying.

Exactly...

matttye

Are you sure a motorbike will be cheaper than public transport?
Petrol/diesel is cheaper (for me, at least), but petrol+insurance+tax+maintenance is not cheaper. Not at all.

I'd suggest you save up £1k and buy a cheap second hand vehicle, then you can always save up for a better one as suggested earlier.

messes

You can get a decent bike for 1-2k and an okay bike for 500-700. If you earn enough in a day to pay off a 6k loan. It shouldn't take many days to buy a bike cash.