12 Month Loan - for travelling!

PotatoMan_3

Hi,

I'm looking for advice on my best option for a loan of about £8k for 12 months to go travelling with. I'm debt free at the moment but have no savings.

Bearing in mind I won't be working for at least the first 4 months of my trip, whats the best way to finance it?

Credit cards with 0% and all that seem to have some awkward ts&Cs that if I miss a payment the 0% offer will nullify.
Ideally a loan that allows you to take a 12 month break immediately, but I doubt that exists!

I should be able to pay it off in a lump sum in 12 months, but I dont want to incur penalties!

Any ideas?
Thanks

kennyboy66_2

PotatoMan wrote: »

Any ideas?
Thanks

Save up!

Would you lend money to someone on this basis ?

I wouldn't - unless I was getting a sky high rate of interest. Sorry.

PotatoMan_3

kennyboy66 wrote: »

Save up!

Would you lend money to someone on this basis ?

I wouldn't - unless I was getting a sky high rate of interest. Sorry.

Not interested in saving at the moment, thats the point. I'm asking about possible loan options. Egg personal loan at around 9.9% seems the best option so far.

CLAPTON

It would seem you need a loan that comprise
: 8000 for your travel
: plus one years worth of monthly repayments
: plus an allowance (3months?) to allow you to continue to pay on your return until you get a job.
: plus money to actually live on for a few months when you get back (how much would you need for this?)


whether thats feasible depends upon your current earnings and credit record which you haven't mentioned.

I'ld be suprised in a 0% CC would be suitable as often the limits are too small for your purposes

In any event if you do this make sure you set up a DD or a Standing Order to repay the CC/loan so you dont accidentally default.

CLAPTON

and
for example if you took out a loan at 9.9% over 36 months and allowed for 15 monthly payments as previous post and say 2000 living expenses on return then you actually need to borrow as amazing £19,000.

PotatoMan_3

Thanks for that.

Can you elaborate on why I'd need £19k?

I have a very good credit record. Just coming to the end of a 12 month 4k loan and I earn in the region of 35k p.a.

I only intend on borrowing 8k for 12 months, as I have that much of a windfall coming to me after I come back.

Point taken on DD for payments - essential!

I plan on working whilst away to cover myself for living expenses, and plan on coming back with a few quid to get me started all over again.

CLAPTON

well I was basing it on the assumptions as follows
9.9% interest rate
repayment 36 months
2000 needed on return (but you say you dont need this)
and sufficient for 15 payments (I year plus 3 months on return)

it goes like this

19500 at 9.9% over 36 will cost 630 per month
so 15 x 630 = 9,450
plus 2000 living
plus the 8000 for travelling
so you need = 8000 + 2000 + 9,450 =19,450

however if you dont need the 2000 or the 3 monthly payment but only need the 12 while way it reduces to only 13,200 but without knowing your full circumstances I cant really work it out.