Looking for advice

Sjh91

I am a 24 year old male looking for some advice...

I moved into my own flat at the start of October and have struggled since with my finances, I only earn around 1k per month and I'm currently £1200 overdrawn. In an ideal scenario id like a loan of 2k to pay back in 2 years but my credit rating probably isn't the best and it looks unlikely I'll be accepted for one, what are my best options here? Ideally I'd like a credit card where I could transfer the money into my current account and pay back a certain amount each month or something.

Thanks

grumbler

Sjh91 wrote: »

I ... have struggled since with my finances, I only earn around 1k per month and I'm currently £1200 overdrawn. In an ideal scenario id like a loan of 2k to pay back in 2 years

As you don't say how much the overdraft costs you, it's absolutely unclear why you believe that a loan can help , let alone is an 'ideal scenario'.
The main problem to address seems to be a disbalance between earning and spending.

Ideally I'd like a credit card where I could transfer the money into my current account and pay back a certain amount each month or something.

Again, unless it's a 0% card, it's not clear why it's better than paying a certain amount directly to the current account. However, a 0% card is more hard to get than a loan.

I suggest to start with posting your SOA on DFW board:
DFW Newbies: Where to start, Challenges, SOAs, ...

Sjh91

Yes I agree there is an imbalance between earning and spending which I want to address. It's currently £1 a day. Presuming you mean 0% APR I wouldn't be expecting a 0% card anyway, if it's means having to pay back £2500 over 2 years then that's ok

CLAPTON

Sjh91 wrote: »

I am a 24 year old male looking for some advice...

I moved into my own flat at the start of October and have struggled since with my finances, I only earn around 1k per month and I'm currently £1200 overdrawn. In an ideal scenario id like a loan of 2k to pay back in 2 years but my credit rating probably isn't the best and it looks unlikely I'll be accepted for one, what are my best options here? Ideally I'd like a credit card where I could transfer the money into my current account and pay back a certain amount each month or something.

Thanks

if you have an OD of 1200, why do you want a loan for 2,000?

how much can you pay back each month?

do you have a proper budget which shows all your costs including all the yearly/irregular ones ?

Sjh91

To get me back in the green, I haven't budgeted well the last couple of months, I want to be able to try and keep to 75 per week and try to pay back 100 a month, monthly outgoings around 530 before food and including travel, if I paid back 100 a month and stuck to 75 a week on food and leisure I think that should work out ok

[Deleted User]

Borrowing extra just to put into your bank account is the worst possible reason. Worse than borrowing for Christmas, holidays or One Direction tickets.

If you can afford to pay back the excess, with interest, then you can afford to save.

You need to plan your budget, as Clapton suggests.

Sjh91

Just feel like it's going to take a while to get out of my overdraft

[Deleted User]

It may, but you can't borrow your way out of debt.

Post up a detailed SOA, or a budget, either here or on the DFW boards and you'll get more help than you'll know what to do with.

CLAPTON

Sjh91 wrote: »

Just feel like it's going to take a while to get out of my overdraft

why not go over to the debtfreewannabe board and post up your budget (SOA) there and get advice from people there

they're a friendly lot and many are in similar situations to yourself

Sjh91

Will do, thank you guys

eskbanker

Although I agree with all the above posters about the need to stick to a budget to get debt under control and so on, I do think OP is fundamentally trying to do the right thing, i.e. shift debt from an overdraft into a loan, since overdrafts are repayable on demand and thus inherently less secure than other credit facilities such as loans or CCs. Obviously there are other factors in play, such as interest rates and the importance of not actually extending debt, but other forms of borrowing are generally better than living in an overdraft, all other things being equal.

OP - have a look at http://www.moneysavingexpert.com/banking/cut-overdraft-costs if you haven't already....