Need help understanding what type of Loan I can get

Dobbibill

CrimRain wrote: »

I've checked the price on their price checker for Provident and it states a weekly repayment of 17.50 if I spread it over 52 weeks, Ngl looking at the APR percentage would give most normal people a heart attack!!! But say if it was just that 17.50 a week that I would have to worry about that would be fine an better for me mentally to deal with as well as a lot more manageable, despite the present situation I would have no issue paying £182 over a year, unless there's hidden things I am missing?

This is a bad idea, please don't consider going to Provident. The APR is 272.2%. Are very and your other debts really charging more than this?

What is the £182?

Using their calculator £500 @ £17.50 a week makes the total repayable £910 so essentially almost double the amount you want to borrow.

How much are your payments you make at the moment?

As above, speak to CAB or Stepchange, borrowing your way out of debt is never a solution.

dealer_wins

I wouldnt consider Provident, their interest rates are even more "vile and evil" than catalogues.

dresdendave

At the moment you owe money to Very. Presumably you must have some spare money after paying your living expenses, otherwise how would you make repayments on your proposed loan?


Your plan is to get a loan to pay off Very and then pay off the loan. Why not keep it simple and just use the spare money you have to pay Very until the balance is cleared and then never use them again?

glennstar

Apologies for not using the quote function but it appears to be throwing a helpful, "The message you have entered is too short. Please lengthen your message to at least 10 characters." error, even though plainly this is not the case.

I'd like to ask dealer wins, Jamiesmum and BrassicWoman, although you aren't alone, what you might suggest other than saying to the OP, "don't do it"?

"I wouldn't consider Provident, their interest rates are even more "vile and evil" than catalogues." dealer wins
"£17.50 a week on a £500 loan paid of over a year is £910 to pay back. Do not do it. You are literally doubling your debt if you do this. Where is the logic in that? Jamiesmum
"Agreed, find a credit union." BrassicWoman

What would you suggest?... BrassicWoman has possibly made the best attempt at assisting but plainly hasn't considered that you will need to be a member of a Credit Union before you can get a loan from a Credit Union and most, if not all, will require you to build up some savings first... so if the OP has time constraints then this may well not be an option.

Thoughts on the situation;

1. If you can possibly avoid borrowing the money then do, plainly!
2. Select an establishment (lender) that you feel comfortable with. The relationship that you have with your lender and their perception of you makes a difference.
3. There is absolutely nothing wrong with Doorstep Lending (assuming this is what you mean by Provident... who are not the only Door Step Lender). Provident (they have a wider portfolio of products than just Door Step) has been the subject of more Regulatory investigations (periodic and not conduct related) than the ordinary man can shake a stick at never fails to perform remarkably well... which you might expect from a company that has been in this business for more than a century. They (as is the case with all lenders) do need you to pay them back but are not beyond reason as, at the end of the day, there is a man (or woman) on your doorstep who can appreciate your personal situation (which is more than can be said for quite a number of other organisations) and can be very helpful/flexible with payment holidays and the like. These often can be negotiated without interest penalties, etc
4. Seek help from your Municipality. Ask your local Council of they can assist you. I'm not suggesting seeking a deferment (as plainly this is just putting off the inevitable) but more a review of what benefits and subsidies they can offer. This might initially feel a little awkward but my experience with regional Civil Servants is generally positive and they will try and help if they possibly can.

And finally, and a little off topic but worth saying, do not enter into an agreement without fully understanding the terms and conditions. If you borrow money you have to pay it back. If you are dishonest about anything when making an application for a financial service in this country then you are guilty of fraud which is a criminal offence.


I am not a lawyer, IFA or otherwise affiliated with any of the businesses mentioned herein.

Jamiesmum

glennstar wrote: »

Apologies for not using the quote function but it appears to be throwing a helpful, "The message you have entered is too short. Please lengthen your message to at least 10 characters." error, even though plainly this is not the case.

I'd like to ask dealer wins, Jamiesmum and BrassicWoman, although you aren't alone, what you might suggest other than saying to the OP, "don't do it"?

"I wouldn't consider Provident, their interest rates are even more "vile and evil" than catalogues." dealer wins
"£17.50 a week on a £500 loan paid of over a year is £910 to pay back. Do not do it. You are literally doubling your debt if you do this. Where is the logic in that? Jamiesmum
"Agreed, find a credit union." BrassicWoman

What would you suggest?... BrassicWoman has possibly made the best attempt at assisting but plainly hasn't considered that you will need to be a member of a Credit Union before you can get a loan from a Credit Union and most, if not all, will require you to build up some savings first... so if the OP has time constraints then this may well not be an option.

I am not a lawyer, IFA or otherwise affiliated with any of the businesses mentioned herein.

I gave my advice earlier in the thread. I said ask a family member or ring your creditors and ask to halt interest payments and arrange repayments. They can do this.

They replied saying that they have no family and that they want smaller repayments and have since checked out the repayments of provident. I assume they got the information wrong on the website, though. Then I said, don't do it.

Unfortunately if any of the replies were helpful they don't seem to of considered it anyway.

I don't see how this is a way out for them. What they have is a very small amount of debt and too double it will only set of a spiral. Paying £960 instead of £500 is madness.

ReadingTim

You can't borrow your way out of debt, so swapping one loan/debt for another loan/debt isn't really going to help - you're just delaying facing up to the inevitable, or dragging your problems out over a longer period of time.

Instead get yourself over to the debtfree wannabe board and post a statement of affairs. This sets out what money you have coming in, what's going out in the form of bills, other spending etc. People over there will be able to advise what you might want to cut (mobile phone and sky TV are usually good places to start), so you can see what you have left over each month to repay which debts.

Give up on getting a loan and concentrate on the following:

• spend less than you earn (or receive in benefits)
• work out ways to spend less and earn more

MuffinTops

If multiple payments are what stress you then could you set up a bank account and transfer all of these payments to that account? Once a month you just need to credit that account with the full amount each company takes. That's at least a way of consolidating your actual payments without borrowing more.

If you set up a standing order and just check that account at times throughout the month to make sure you've set it up correctly then you may find this to be a more comfortable and cheaper option for you.

Jamiesmum

MuffinTops wrote: »

If multiple payments are what stress you then could you set up a bank account and transfer all of these payments to that account? Once a month you just need to credit that account with the full amount each company takes. That's at least a way of consolidating your actual payments without borrowing more.

If you set up a standing order and just check that account at times throughout the month to make sure you've set it up correctly then you may find this to be a more comfortable and cheaper option for you.

For such a simple idea - this is actually really good. Absolutely worth considering.