Loan advice (high interest rate...)

ryanm8655

Thrugelmir wrote: »

Precisely why debt consolidation doesn't work. ( Lenders basing their experience on statistics that evidence this fact). As people still expect to enjoy themselves. Paying down debt is boring and too much like hard work. Worrying about tomorrow when it arrives. Is where disaster strikes. When income for any number of reasons falls or dries up.

My grandfather used to walk 4 miles to work and back to save the bus fare. Then used the money towards his first house deposit. Shows the change of culture over the decades and the addiction to debt.

Would be great to live in a world where the cost of travel to work would make any kind of dent in the amount needed to save a deposit for a house, times have changed unfortunately...(For what it's worth I already cycle just over 10 miles to work, and in a wheelchair...but the attachment I needed cost £3.5k which doesn't help...and the chair it's attached to £4k...)


Anyway...back on topic...


Reading through the terms on the ratesetters loan it all seems pretty standard...so with that in mind am I right in thinking take it over the higher rate offered from Santander?


May seem like a dumb question...


Thanks,
Ryan

-taff

ryanm8655 wrote: »

Would be great to live in a world where the cost of travel to work would make any kind of dent in the amount needed to save a deposit for a house, times have changed unfortunately..

Missing the point, which is, he denied himself things in order to save money for something more important to him.
Your lifestyle of speding money you don't have or spending it in one area as well as another is what's caused you to need this loan in the first place. [Just referencing the eating out etc...]

ryanm8655 wrote: »

Reading through the terms on the ratesetters loan it all seems pretty standard...so with that in mind am I right in thinking take it over the higher rate offered from Santander?

No reason not to.

ryanm8655

-taff wrote: »

Missing the point, which is, he denied himself things in order to save money for something more important to him.
Your lifestyle of speding money you don't have or spending it in one area as well as another is what's caused you to need this loan in the first place. [Just referencing the eating out etc...]

No reason not to.

Yep...if I denied myself any of life's pleasures I could clear the loan in a year pretty comfortably and it is previously spending more money than I have that lead me to need the loan...agreed...


When I took out the loan originally it was knowing I'd be earning considerably more at some point so essentially came down to my discounting of the future...my discount rate was particularly high it seems...definitely regret it now though just glad I am in a position to be able to clear it...


People do have different needs/preferences in life though, some derive a large amount of pleasure in saving money, others get more pleasure going out and spending it...doing things and seeing things...


I just wish I had done so within my means! Then I could legitimately afford to do nice things and save for a house at the same time...live and learn!

-taff

Ah well, it's not like I haven't done the same thing, or countless others

Live and learn indeed

Gaz83

ryanm8655 wrote: »

Would be great to live in a world where the cost of travel to work would make any kind of dent in the amount needed to save a deposit for a house

Well, it would. I realise this is taking the thread hopelessly off-topic, but I used to spend £40 a week commuting to my old job. For 48 weeks a year for 4 years, that worked out to be £7,680, which is £1,680 more than the deposit we paid for our house!

ryanm8655

Gaz83 wrote: »

Well, it would. I realise this is taking the thread hopelessly off-topic, but I used to spend £40 a week commuting to my old job. For 48 weeks a year for 4 years, that worked out to be £7,680, which is £1,680 more than the deposit we paid for our house!

Cycling saves me the bus fair (about £10/20 tops...or it would be if I paid for the bus)...a 1 bedroom flat in London is about £300k (I'm paying £768/month rent for a room in a flatshare...). I appreciate every little helps though! The housing market in London is pretty hopeless for young people in London...


TBH I mainly cycle for the health benefits and the fact it is quicker than the bus rather than financial reasons (bus is free for me anyway). But I do make other financial sacrifices...though I do still eat out/drink a fair amount, but this is my primary means of socialising and otherwise I'd be a hermit...besides I'm in my 20s, I do want to have some fun (I have cut back a lot though, go to the pub for a few rather than out clubbing to the early hours every Friday/Saturday).


Moral of the story (or thread)...don't under value future consumption and you can refinance a loan for a lower rate (even if that rate is still pretty high)...

ryanm8655

Ok. So whatever was wrong with my credit rating seems to have been fixed...

I started using my Santander credit cards and then paying balance in full, not sure if this would have impacted it? Or perhaps it is the fact my address change has now registered...

Anyhow, I am now pre-approved for a whole host of different 0% credit cards.

I have several offers of 0% for 40 month credit cards with which I can do a money transfer, would you do this and then use the money to clear the loan?

The consolidated loan is for £10k @ 11% over 24 months and the money transfer rate is something like 4%...seems a no brainer? I can then use the £480/month to clear the credit cards instead...