Loans options HELP

konn1ch1ha

Pixie5740 wrote: »

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.

Moving house, so complications with bills from previous tenants. BS contraventions from local council on a 'no right turn', losing out on money from my flat, losing out on money from aspects of my self-employed, just to surface the problems.

DCFC79

konn1ch1ha wrote: »

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!

The poster means dont get a loan secured against the flat but I dont think thats been mentioned by yourself.

DCFC79

How much of your week are you doing your tuition ?

Is it half, 2 thirds ?

Are there days when you only do the tuition with 1 client ?

konn1ch1ha

DCFC79 wrote: »

How much of your week are you doing your tuition ?

Is it half, 2 thirds ?

Are there days when you only do the tuition with 1 client ?

2-4 hours per week. The student gets a good deal because he pays me a full month in advance.

I did have three students but has been cut down to one now.

DCFC79

konn1ch1ha wrote: »

2-4 hours per week. The student gets a good deal because he pays me a full month in advance.

I did have three students but has been cut down to one now.

Then you have 3 or 4 days to fill your time with a part time job.

JuicyJesus

This is, hands down, one of the most mental propositions I've ever heard of. Literally none of it makes any sense whatsoever.

• A 28% loan is NEVER - I repeat, NEVER - a good idea for any purpose. If someone offered me that I would tell them to f**k off. I would not take it out and think how clever I was.
• Spreading the cost of one year's car insurance over five years is completely bananas. What happens next year?
• You only work a few hours a week, and you give your student a "good deal" when your issue appears to be one of a lack of income - hello!?
• Your entire plan is predicated on business picking up for your self-employment, but you're already self employed and barely working as it is - why do you think this will change?
• You aren't paying any less, in fact you will owe more because you've spread out a tiny debt over five years at an eyewatering interest rate. In fact, you've now put interest on money you'd loaned interest free from friends without any apparent pressing demand to have this money paid back - this is berserk
• The rent you're charging doesn't cover your costs - you are within your rights to try to increase this next time the tenancy comes up for renewal, why have you not considered this?
• You own a property in Brighton rent free but you pay rent and bills to live in London, a ridiculously expensive place, because that's where your tiny amount of work is based. Are you utterly insane? A train ticket each way for your 2-4 hours a week would be an instant saving compared to paying rent to live in London! Why can you not do this self-employed work as a tutor in Brighton? There are plenty of students in Brighton, I'm sure some of them need tutors!!! Hell, just work in a different job in Brighton so you can afford to pay the bills you already have! You have no rent to pay on a property, you could earn a full time wage AND have most of it available to p*ss up the wall!
• Even better... the car! Drop it! You can't afford the insurance! If you do insist on living in London, take the Tube, which is bound to be cheaper than the running costs of a car!
• The piece de resistance is... you are running at a £100pm deficit but ONLY JUST NOW have you considered cutting nice-to-haves like Netflix. That is completely crazy. Cutting your non-essential outgoings should be job number one, not something you do AFTER securing a loan at such a lunatic rate.

I've seen someone on these forums buy a 3D TV they couldn't afford solely so their kid could have a happy time at school talking about it, and even that pales in comparison to the absolute lunacy of this plan. You already have an income deficit and your plan is to therefore borrow more money, while you dither about bringing in more money from multiple avenues you have? What the hell are you on?

DCFC79

OP I assumed you had more clients/students than what you currently have.

Why are you residing in London ?

konn1ch1ha

DCFC79 wrote: »

OP I assumed you had more clients/students than what you currently have.

Why are you residing in London ?

Yes, I did. And work has been very slow lately, ever normally this bad.

I live here because it's where my work (when it happens!) is.

kuohu

Is this the same issue as previous threads needing £1700 and the only option being a high interest Lloyds loan?

https://forums.moneysavingexpert.com/discussion/5497480
https://forums.moneysavingexpert.com/discussion/5515135
https://forums.moneysavingexpert.com/discussion/5514542

konn1ch1ha

kuohu wrote: »

Is this the same issue as previous threads needing £1700 and the only option being a high interest Lloyds loan?

https://forums.moneysavingexpert.com/discussion/5497480
https://forums.moneysavingexpert.com/discussion/5515135
https://forums.moneysavingexpert.com/discussion/5514542

Yes, it is. Why?