a loan question

roymoz

morning. I recently applied for a loan with a bank who I already have a loan with. I thought I'd been refused this(but wasn't)! so I applied with a building society. I didn't want to apply again because it can make you look desperate, however, the 2nd application was approved & paid to me before the 1st one was approved. I would very much prefer the 1st loan as the apr is far better than the 2nd but the funds have already been used. if I take out the 1st loan & have that sat in my bank account,can I then cancel the 2nd loan,which was approved on 27/03 & use the funds from this for the 2nd loan, or will the building society know in any way that the loan amount I no longer require isn't what they paid to me?

redpete

You will have received let's say 2 X £1000 into your bank account from the two loans. You've spent £1000 and still have £1000 in the bank. You now cancel the second loan and pay them back £1000 (maybe with a little extra for the interest over a few days). The lender doesn't care that the electronic £s are not the same electronic £s that they transferred to you in the first place.

redpete

Just noticed that last month you were considering arranging a DMP. Seems a bit odd to be taking out more loans now.

Lioness_Twinkletoes

OP has a history of really poor money management. He's clearly decided to consolidate rather than pay off his debts. He'll be back, bleating that he's got debts he can't afford to service.

roymoz

cheers for that positive comment. yes, I am rubbish with money but I will get straight. I thought I'd get help on here but theres always one. I'm in a little bit of a rut just now. 2 loans I have- 1 finishes in dec this year another march 2015. the new loan is to consolidate 2 credit card debts and suits me. I can afford everything but am only paying the minimum off on the cards. the interest is a lot cheaper. the credit cards will be cancelled & i'll be a lot better off in 12 months time.

DCFC79

roymoz wrote: »

cheers for that positive comment. yes, I am rubbish with money but I will get straight. I thought I'd get help on here but theres always one. I'm in a little bit of a rut just now. 2 loans I have- 1 finishes in dec this year another march 2015. the new loan is to consolidate 2 credit card debts and suits me. I can afford everything but am only paying the minimum off on the cards. the interest is a lot cheaper. the credit cards will be cancelled & i'll be a lot better off in 12 months time.

Will you be better off though, wont you be tempted to apply for more cards ?

Consolidation rarely works unless you stick to cancelling the cards or amassing other debt.

roymoz

yes. I'm determined.

Lioness_Twinkletoes

roymoz wrote: »

cheers for that positive comment. yes, I am rubbish with money but I will get straight

Getting straight does not mean getting more debt. It means tightening your belt, making savings in everyday life, cutting back and paying what you owe. In other words, stop spending what you don't have.

Thrugelmir

roymoz wrote: »

yes. I'm determined.

Good luck. Requires great discipline and determination.

roymoz

the interest works out cheaper doing it this way. I see it as transferring the debt not getting into more. i'll be loads better off in 12 months but I can't discipline myself to pay more than the minimum payments on the cards,so they are going. I've had to rely on them in recent times but I'm on the road to getting straight again.

roymoz

thankyou all for your replies anyway people