Is this possible

kuohu

Mr_F_Dorsetty wrote: »

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?

Absolutely. In 2 years time she meets Mr Right, and she's still paying for this holiday.

In 3 year's time they decide to move in together and need to buy some things for the house, but she's still paying for this holiday and car.

In 3.5 year's time the car needs some work anyway and another loan is needed to pay for a new one.

In 4 year's time they start thinking about marriage, but she's still paying for this holiday and previous car.

In 6 year's time she's expecting their first baby and of course needs to buy many things, but she's still paying for this holiday and previous car.

LittleMissGiggles123

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.

I idea of taking it for 7 years instead of using credit cards is to spread out load with a high possibility of repaying early in few years if need be.

By the way, she would be taking a sabbatical for 6-8 months for once in a life dream travel(drive!) holiday in US.

So a 6-8 month sabbatical, which would be unpaid? So how will she pay back the loans monthly repayments during this time?

DevCoder

Most lenders will be scared off by the credit cards anyway, even if they are not utilised she still has the ability to draw down another £20K on them which would push her incoming / outgoing ratio well over what any lender would accept.

newbridge

She had been saving/investing till now for this trip, so not that she can't pay back if required before end of loan period. Just being clever by taking loan at lower interest rate than what she earns from investments.

But the question is would any bank lend that kind of money(i did think so) or what is the max? Would cancelling all credit card before be worth it.