Friend in need...

aimex

so is this the type of thing she should be looking for?

http://www.moneybackbank.co.uk/home.html

£5000 over 5 years £95ish a month? lower apr and lower monthly payments? sorry im new to all this and just trying to get the best deal for her.

x

Kevicho

Moneyback Bank is a trading name of Alliance & Leicester plc.

Interesting.

JCD_Capulet

aimex wrote: »

Thanks for the replies guys.sorry if im being silly but what is an SOA?

She is a full time mummy and does not currently work. she is also currently living with a friend until she finds somewhere to live and therefore its perhaps not a true reflection on her situation. she would get housing benefit to cover her rent and would then be elligible for increased tax credits. her income is only what she receives in child benefit (120 ish per month) and tax credits, which are being reassessed. she is not receiving any child maintenance at the mo and this is in hands of CSA.

thanks so much for your help, she will appreciate it xx

hi there, an SOA is a Statement Of Afairs. A full detailed list of all incommings and outgoings from benefits in to money for sweets out. With an soa listed the other users on theese forums can help point out what can be done with reductions to costs ect and offer advice. All the best for your friend x

aimex

thanks for the help so far guys.

that is really interesting that Moneyback are "related" to alliance and leicester. i did look at the link provided Kericho but it seemed to relate to loans for £7000.

after doing some research i think consolidation is definately the way forward and its just about finding the best apr now.

x

rayday2

aimex wrote: »

She is a full time mummy and does not currently work. she is also currently living with a friend until she finds somewhere to live and therefore its perhaps not a true reflection on her situation. she would get housing benefit to cover her rent and would then be elligible for increased tax credits. her income is only what she receives in child benefit (120 ish per month) and tax credits, which are being reassessed. she is not receiving any child maintenance at the mo and this is in hands of CSA.

thanks so much for your help, she will appreciate it xx

How can she apply for a loan without any employment?? If she does it is pointless finding a low apr (in adverts as she is not typical shes unemployed!!) as soon as they see no employment they will hike the rate up. I am not sure they can lend on child benefit possibly tax credits but like you have said that is being reassessed so cannot be used at the moment.

aimex

oh i, perhaps stupidly, thought that loans were calculated as it were on income, and not by virtue of employment.......? She is looking to apply for the loan asap but that doesnt mean that she cannot wait for the tax credits calculation etc x

RAS

Aimex

No job, and the only loans will be c £500 in the 29.9% range. When does she return to work?

She really needs to see a proper debt counsellor at CCCS, Paylan, CAB or contact the National Debt Line. The details are listed in the link from the front page on this board.

aimex

Oh really? She is not planning on returning to work in the near future, as she is on her own and now has two children under the age of 2....so there is really not much she can do apart from ring one of those co's?

red74

An alternative to consolidating onto a loan would be to balance transfer all her current cards onto one low interest life of balance credit card (but she must never use the card for purchases because you get ripped off if you do), it would reduce the interest but whether it would reduce the monthly repayment would need some looking into. But the benefit is that should she get any spare cash she can throw it straight at the debt without being penalised like she probably would with a loan.

Something to consider when looking at APRs for loans, I'm not sure if the same applies now but when I was looking into them a couple of years ago some of them have an APR threshold at £5k, so if you borrowed £5k you got it at 7.9% APR, but if you borrowed £4999 or less you got an APR of 11.9% (meaning you're actually paying back more for borrowing less), so it's worth making sure you check things out thoroughly.

aimex

thanks for all the comments so far guys, its really made me think about this one!!!

i wonder if she will even be able to pay the £97 payments, even if she were able to get such a deal, and it seems unlikely that she would. I cant think how she is going to be in a position to pay this out whilst living on her own with her two children. What would happen if she couldnt pay them? I know they would issue a CCJ etc but so what! if she cant pay she cant pay can she! would it be worthwhile thinking about petitioning for her own bankruptcy? i know it costs money to do this but....and i know it would effect her credit rating etc for the future but its unlikely she is going to be in a position to buy a house or anything in the near future so does it matter that much?

sorry just some random thoughts...trying to find a solution...not sure if there is one really!I didnt think about the fact that most lenders would think twice about lending because of her lack of employment etc.

x