Self-employed on a low income needs a loaned £3-4k buffer cash to be repaid within 2 years
Hi everyone. I am a single, childless window cleaner. I live in a rented room in a house of multiple occupation and my average monthly income (after NI and zero income tax) is about £860. I have a credit card with a £2,100 credit limit, but I need access to about £3-4k more. I tried to borrow the money via Nationwide, but in my online quotes, I was warned that if I applied for any money at all, I would be most likely rejected because of my insufficient income. Can you recommend someone who will lend me £3-4k on a 2-year monthly instalment plan with an annual interest rate lower than 60 per cent? Thank you!
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You realistically don't have the income to service any debt at all so nobody should be offering to lend you three quarters (I'm assuming "I need 3-4k more" means you'll also take whatever you can get off the credit card) of your annual salary over 2 years.
If this is about money to live off see https://www.entitledto.co.uk/ to see if you're entitled to any benefits. If it's about buying something you probably don't need, don't buy it.
£2 + £4k = £6k which is more than half.
You can't afford to service this debt either way.
Build up a buffer through saving, not debt. If you can't afford to build up a buffer through saving, you can't afford to service a debt.
Borrowing money for a rainy day scenario is, again, insane. Savings are just that, savings. You don't build up emergency funds through debt.
I learned the very hard way that more credit is not the answer.
What you need to do is work out your income and your outgoings. It won't be helpful to publish it here because I doubt anyone would encourage you to make any applications for more credit. BUT it will help you to see how much disposable income you have and you could put all that into a savings account for two years instead of attempting to take on debt. That time will fly!
Believe me, I know from sad past experience that closing your eyes, burying your head in the sand, ignoring people who know their onions and hoping for the best just does not work when it comes to money.
I agree with Heinz, above, have a look to see if you are entitled to any benefits, or contact Citizens Advice to ask. You may be pleasantly surprised. For example, people on low incomes can be entitled to help with health costs which is good for cutting dentist and optician costs.
Also, I DO hope that, as a window cleaner, you have some insurance to protect any income lost if you have any accident (not that I'm saying you will but it's definitely what I'd call a dangerous occupation). Better to be safe than sorry.