To Loan or not to Loan

konn1ch1ha

Posted this on the Loans board but was directed to come here.

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

FatVonD

Most here will say that consolidation loans don't work and I am the living, walking proof of that.

The most likely scenario is that in a year you will be back here with the same level of overdraft plus a £2,000 loan to service on top of it.

If you post an SOA people will be able to tell you where you can cut back. You are very lucky to be mortgage free, that must be a huge weight off your mind. You mention a rental income, is that for a lodger and, if not, do you have room for one?

I think your best way out of the situation might be a second job, are there any music venues near you looking for bar staff? Get paid to watch bands I spent my 20s working a second job in a club that paid me effectively my pocket money for each week while my salary from my 'real' job covered the mortgage and bills.

konn1ch1ha

FatVonD wrote: »

Most here will say that consolidation loans don't work and I am the living, walking proof of that.

The most likely scenario is that in a year you will be back here with the same level of overdraft plus a £2,000 loan to service on top of it.

If you post an SOA people will be able to tell you where you can cut back. You are very lucky to be mortgage free, that must be a huge weight off your mind. You mention a rental income, is that for a lodger and, if not, do you have room for one?

I think your best way out of the situation might be a second job, are there any music venues near you looking for bar staff? Get paid to watch bands I spent my 20s working a second job in a club that paid me effectively my pocket money for each week while my salary from my 'real' job covered the mortgage and bills.

Thanks for the constructive and un-sanctimonious response.

What's SOA? Not good with abbreviations on this website.

I've been looking around for part-time work, there's a few things in the pipeline but not immediate. Working in a bar could be good but I have no bar experience, which is what most bar managers require in an employee?

I've been cutting back on spending to save me money each month.

sourcrates

konn1ch1ha wrote: »

Thanks for the constructive and un-sanctimonious response.
What's SOA? Not good with abbreviations on this website.

SOA (Statement of affairs).

The link to which, is here :

http://www.stoozing.com/calculator/soa.php

konn1ch1ha

sourcrates wrote: »

SOA (Statement of affairs).

The link to which, is here :

http://www.stoozing.com/calculator/soa.php

Thanks.

Do you know how I post it? It says "Unable to open ./Boards/debt.txt."

Is this die to a fault on the webpage? Or do I need to register/login?

EssexHebridean

Have you formatted for MSE and then copied it? If so you should just be able to paste the copy into this thread I think.