Is this possible

DCFC79

newbridge wrote: »

20k is made up of 2 cards ( both with banks she has accounts with)

Still no need for 2 cards, 2 cards just opens yourself to temptation to spend and not keep a track on the spending although like you say its todays young generation and all.

JC_Derby

Credit cards are not the devil, if used properly they are brilliant. Any reason she can't get a zero Interest card?

newbridge

JC_Derby wrote: »

Credit cards are not the devil, if used properly they are brilliant. Any reason she can't get a zero Interest card?

Agree with you. She is playing safe with loan, as credit card would require her to pay off all money in 12-18month before variable rate kicks in.

Mr_F_Dorsetty

I'm sure this doesn't need saying but I am stunned that this lady wants to borrow £25k unsecured to be fundamentally squandered.

Holidays earn you nothing, cars just lose money and 'bits & bobs'?

7 years? What happens when she meets the 'love of her life' in a couple of years time maybe and they then want to buy a house?

I don't care what anyone says, £25k unsecured on a 38k salary is a really serious amount of debt , even in these days of mental debt levels that so many carry.

If it were me, then there's no way I'd be doing that... but it's her bed of course so she'll have to make it how she wants.

DCFC79

Mr_F_Dorsetty wrote: »

I'm sure this doesn't need saying but I am stunned that this lady wants to borrow £25k unsecured to be fundamentally squandered.

Holidays earn you nothing, cars just lose money and 'bits & bobs'?

7 years? What happens when she meets the 'love of her life' in a couple of years time maybe and they then want to buy a house?

I don't care what anyone says, £25k unsecured on a 38k salary is a really serious amount of debt , even in these days of mental debt levels that so many carry.

If it were me, then there's no way I'd be doing that... but it's her bed of course so she'll have to make it how she wants.

For first time I actually agree with you but the youth of today can be determined to do what they want.

BillJones

newbridge wrote: »

Apparently she has been saving/investing regulary but is locked for few years. Her argument is that since it would return her better returns borrowing at current loans rates ~6.5% might be cheaper.

Well, it sounds like she is determined, and that you don't feel like trying to talk her out of it, so we are left back at the fact that it's not likely to happen because of the debt to earnings ratio. She'll not find until she applies, though, and her own bank would generally be the best starting point.

It's a shame that she's aiming to have her "once in a lifetime" trip so young, and on credit, of course. I held back on that sort of thing to fight my way up the corporate greasy pole instead, and so consequently have these once ian lifetime trips four or five times a year, but each to their own.

newbridge

Some really interesting thoughts. I might make her read these thread and have her rethink.

"Bits & bobs" are fees for some career related training on her return to raise the salary levels.

dealer_wins

newbridge wrote: »

a travelling holiday, car and spend on few bits and bobs here and there..

Seriously these are things that should be paid for out of savings, NOT a loan.

Especially on a 38K salary!!

newbridge

She has got equivalent or slightly more saved-up/invested but is tied up for few years which gives her higher returns than interest on the loan. Assume she plans on doing early re-payment of loan once available.

PeacefulWaters

You know what, as a once in a lifetime opportunity? Go for it.

Paid for by cashing in the investments.

£25k in debt is madness. She won't enjoy paying it back for six years after the moment of enjoyment has passed.