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Loan offered and unsure to accept
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How much do you earn. The lender will assess you on the loan based on 12k.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £58,108
Cc around 8k.0 -
I earn £31k a year. They gave me a loan for £7500. £290 a month 30 months. Iv just paid off all accounts and I will close the drafty account once payment shows as being updated on my balance0
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Houndog6105 wrote: »They gave me a loan for £7500. £290 a month 30 months. Iv just paid off all accounts and I will close the drafty account once payment shows as being updated on my balance
Please keep to your word and be disciplined. Set yourself a monthly budget and stick to it. I wish you well Houndog…Houndog6105 wrote: »I would close the drafty straight away . The credit cards I would keep open but spend £20 a month and just pay off straight away just to keep that available credit showing on my report. I will be very disciplined.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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Spending £20 on the card and paying off imemdiately is pointless, it will make the card appear unused. Assuming drafty and bon prix are paid up and closed off as well as the Aqua and Cap One being paid up, use Aqua for monthly spending, paid off in full every month and then deal with. Close Cap One for the moment and focus all your efforts on the loan now, overpay if possible. If you have been used to paying £315 then pay £315 on the loan to help clear it
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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It will only save you money if you actually close the accounts and not open any more or get any more credit cards using the justification of having freed up money spare. Unless you do the only thing you'll do is add several grand to your debt albeit not immediately. Consolidation loans only work for the disciplined who have identified why they got in the situation they're now in, addressed that and don't repeat it.
OP this.
Only do it IF you can control your spending. Don't take out the loan, consolidate the debts and at some point further down the line you create some more debts, look at your spending as well as consolidating. Look at saving x amount a month.0 -
Houndog6105 wrote: »I would close the drafty straight away . The credit cards I would keep open but spend £20 a month and just pay off straight away just to keep that available credit showing on my report. I will be very disciplined. Most definitely
Don't pay the £20 till it appears on a statementI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards 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.0 -
Thankyou everyone. I appreciate all the advice0
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Houndog6105 wrote: »I would close the drafty straight away . The credit cards I would keep open but spend £20 a month and just pay off straight away just to keep that available credit showing on my report. I will be very disciplined. Most definitely
I wish you the best of luck. Use the freed up and spare money to build up an emergency fund so you don't end up having to resort to the cards again if an unexpected bill comes along.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I wish you the best of luck. Use the freed up and spare money to build up an emergency fund so you don't end up having to resort to the cards again if an unexpected bill comes along.
Given the loan is 28.65%, all the money possible should be chucked at it (assuming no problems with over paying) to get it down as quickly as possible.
At the rate of £272 a month he will repay £8174 total over 2 years 7 months. Paying £315 will mean paying it off 6 months earlier and saving £406. Bumping it up to £350 will mean a saving of £637 and paying off in 1 year 10 monthsSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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