Loans options HELP

konn1ch1ha

Hello all,

I am coming here for advice on what loans/options I could take.

A little bit about myself - I am recently fully self-employed musician and music teacher and I own (no mortgage) a flat, which brings me rental income.

My income per month, on average, is about £1000 with maybe about £100 deficit. I am in my overdraft by £2750 and the interest per month is around £40-50. I'm apply for other part time work to take the edge off the interest and to allow myself to have more money.

Before you ask, I am in my overdraft because the last 6 months or so bills have just been thrown at me left, right and centre - I haven't come here for sympathy seeking, we all go through this. But in reality, it has put me far under.

I have applied for a loan with my bank, Lloyds, and have done calculations to see if I would be better off per month. I have applied between £1-2k with monthly repayments being around £40-50. Interest is around 28%.

The loan would be to pay off debts to friends and make less deep in to my overdraft. I am also conscious of my car insurance being due in April and my monthly outgoings for the insurance are bulky so it would be ideal to pay off in one go.

Any advice/insight would be very appreciated.

Thanks

[Deleted User]

You won't get a loan.

Visit the DFW boards for advice on how to cut costs. With part time work, you should be able to start reducing your debt.

dieselv2

It's a bad idea to get more credit to pay off the existing credit you can't afford.

Have your other debts defaulted?

http://www.stoozing.com/calculator/soa.php <--Fill this out and select format for MSE and it'll show you what your available money is each month to pay towards debts.

konn1ch1ha

Deleted_User wrote: »

You won't get a loan.

Visit the DFW boards for advice on how to cut costs. With part time work, you should be able to start reducing your debt.

Whether I should get it or not is a different matter, but I have actually been approved for it. This is why I've come here.

konn1ch1ha

dieselv2 wrote: »

It's a bad idea to get more credit to pay off the existing credit you can't afford.

Have your other debts defaulted?

http://www.stoozing.com/calculator/soa.php <--Fill this out and select format for MSE and it'll show you what your available money is each month to pay towards debts.

What do you mean by debts defaulted?

Other debts are just to friends of less than £400, which they're in no rush for it back. They're good mates.

I do agree getting he loan could be a risk, but it does actually put in me in a better financial position every month.

[Deleted User]

So what advice do you want?

DCFC79

konn1ch1ha wrote: »

Whether I should get it or not is a different matter, but I have actually been approved for it. This is why I've come here.

But why are you here then ?

konn1ch1ha

Deleted_User wrote: »

So what advice do you want?

Alternative options to take, input etc...

DCFC79

konn1ch1ha wrote: »

What do you mean by debts defaulted?

Other debts are just to friends of less than £400, which they're in no rush for it back. They're good mates.

I do agree getting he loan could be a risk, but it does actually put in me in a better financial position every month.

But you still owe money, have just shifted it from A to B.

[Deleted User]

The loan rate sounds more expensive than your overdraft.

Would the car insurance not be cheaper paid on a monthly basis?

DCFC79

konn1ch1ha wrote: »

Alternative options to take, input etc...

Dont take the loan, cut back on spending.

Either increase your income or spend less.