Loans options HELP

-taff

go to the debt free wannabe board.
You're looking for a consolidation loan, using the myth that one debt is easier to pay than lots of little ones. It never works out that way because you don't tackle the original cause of overspending for what you earn.

konn1ch1ha

Caz3121 wrote: »

how many years is this loan for?
you state that it would be cheaper than paying your car insurance monthly, but what happens next year when you are still making payments for this years loan which paid for the insurance but you need to buy the next years?

The loan is spread over 5 years.

And I have thought about this, but I'm confident my self-employment will be making a lot more money by then. I'm still 'umming and 'aring.

fwor

konn1ch1ha wrote: »

The loan is spread over 5 years.

The idea of paying for one year's insurance over the next 5 years at 28% interest is, quite frankly, something that nobody should even think about. You would simply be piling more debt onto your future self.

Money_Rollercoaster

The current loan offer sounds like it won't really be instrumental in changing your financial situation. It won't clear your overdraft, it won't get you more work and it won't get you clear of debt any time soon. I can easily foresee this 5 year debt just compounding your existing problems.


What's the deal with your flat. Are you saying you own a flat which you rent out and are paying to live somewhere else and the net effect is you're worse off than living in the flat you own?? I might be reading your opening post incorrectly.

suebgriseum

Hi,
You have a flat mortgage free, thats a positive !

You need to get more income, part time job (doing what ever you are able to do), even 40-50 a week would make a big difference.

The loan at such an high rate really is not good, especially when you have an asset, but please resit having a loan against your flat.

Additional income will bite away the debt.

Pixie5740

Your financial situation will not improve by taking out a 28% APR loan over 5 years. What is the APR of your overdraft? Less than 28%? Insurers won't charge you as much as 28% APR to spread the payments over 12 months. I'm guessing your friend's aren't charging you 28% APR of the money you've borrowed from them. What you are proposing is taking a bunch of debt and making it even more expensive.

Your monthly outgoings won't improve by taking a loan to pay your car insurance in one go. To do the same next year you'll need to put money aside each month to have the funds available and you'll need to do this whilst repaying the loan.

What are these bills that gave hit you? Bills that you knew were coming? Just like you know your car insurance needs renewed every April but don't set any money aside to pay for it. Your problems seems to be budgeting. In reality very few bills are ever a surprise.

27cool

fwor wrote: »

The idea of paying for one year's insurance over the next 5 years at 28% interest is, quite frankly, something that nobody should even think about. You would simply be piling more debt onto your future self.

I find it difficult to think that this plan is anything other than sheer financial madness.

konn1ch1ha

Caz3121 wrote: »

how many years is this loan for?
you state that it would be cheaper than paying your car insurance monthly, but what happens next year when you are still making payments for this years loan which paid for the insurance but you need to buy the next years?

fwor wrote: »

The idea of paying for one year's insurance over the next 5 years at 28% interest is, quite frankly, something that nobody should even think about. You would simply be piling more debt onto your future self.

It's not just for that; paying off debts, friends that I owe money to etc. But it's to help reduce my monthly outgoings mainly.

konn1ch1ha

Money_Rollercoaster wrote: »

The current loan offer sounds like it won't really be instrumental in changing your financial situation. It won't clear your overdraft, it won't get you more work and it won't get you clear of debt any time soon. I can easily foresee this 5 year debt just compounding your existing problems.


What's the deal with your flat. Are you saying you own a flat which you rent out and are paying to live somewhere else and the net effect is you're worse off than living in the flat you own?? I might be reading your opening post incorrectly.

I rent out my flat which pays mostly for my rent where I live (minus give or take £100). It's very frustrating because my rent has been reduced because of impending works on the building which have been delayed because of other shareholders not paying up.

I've lost out on about £100 every month for two sets of 6 months tenancies.

I couldn't live at my flat (Brighton) because most of my work is based in London.

konn1ch1ha

suebgriseum wrote: »

Hi,
You have a flat mortgage free, thats a positive !

You need to get more income, part time job (doing what ever you are able to do), even 40-50 a week would make a big difference.

The loan at such an high rate really is not good, especially when you have an asset, but please resit having a loan against your flat.

Additional income will bite away the debt.

Sorry, what do you mean by "resit having a loan"?

Thanks for the advice. Now just for the arduous task of finding a part time job!