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Bank loan for Property repairs and Overdraft repayment?
Comments
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It is not a good idea to consolidate to get rid of existing borrowing. The way to reduce your overdraft is to budget and stick to it and put in the budget a monthly amount to repay your overdraft by. At the same time you should address your lack of savings for emergencies as you obviously don't have any and as a home owner you should. Similarly borrowing for wants and not needs in your situation is not a good idea until you have got on top of your finances.
The essential repairs would ideally be financed by a 0% money transfer card if you are eligible for one. A bank loan is an option but 21% is a really high interest rate so you need to decide if you are willing to pay that rate (I wouldn't) or try to come to some arrangement with your shared ownership company (ie staggered repayments if they will allow this?).I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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enthusiasticsaver wrote: »It is not a good idea to consolidate to get rid of existing borrowing. The way to reduce your overdraft is to budget and stick to it and put in the budget a monthly amount to repay your overdraft by. At the same time you should address your lack of savings for emergencies as you obviously don't have any and as a home owner you should. Similarly borrowing for wants and not needs in your situation is not a good idea until you have got on top of your finances.
The essential repairs would ideally be financed by a 0% money transfer card if you are eligible for one. A bank loan is an option but 21% is a really high interest rate so you need to decide if you are willing to pay that rate (I wouldn't) or try to come to some arrangement with your shared ownership company (ie staggered repayments if they will allow this?).
I'm not going to borrow anymore than I need to, which is £2000. Paying it off over three years is doable - I have no other choice. Transfer cards that have been offered are an extortion.
I can ask the shared ownership but it's unlikely. I know one of the owners paid half and half. It might be worth asking.0
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