Loan to consolidate and get new car, advice

forestcub

That’s really helpful, thanks for your insight! I do like to have a go at things myself if I can so will have a look at this. Just a bit difficult sometimes as I don’t have a driveway or parking outside the house.

really appreciate your response and will keep my eyes peeled for price drops

MattMattMattUK

forestcub said:

That’s really helpful, thanks for your insight! I do like to have a go at things myself if I can so will have a look at this. Just a bit difficult sometimes as I don’t have a driveway or parking outside the house.

Do you have a friend or family member who's drive or garage you could use for a few hours when you need to do something? The other advantage of that is you have a second set of hands/eyes if you need them. 

forestcub said:

really appreciate your response and will keep my eyes peeled for price drops

It really is worth it, do a bunch of research, keep an eye on costs, and possibly even a log on a spreadsheet. If you factor it in to your future plans it can be really worth it as you are talking about borrowing £12k now, which will likely involve a higher interest rate with your adverse credit and that is if you can even get the loan, however in six months time car prices might have dropped 10-30%, you will have paid off more debt so would potentially be borrowing less (and may have even cleared your DMP) so as both the amount and the rate would hopefully be lower.

Also, I would seriously consider looking at the Debt Free Wannabee board on here, they will likely be able to work through your budget and save you another £100+ pcm, which all adds up, you can then use that to pay debts off quicker, save towards a new car, or enjoy it down the pub!

forestcub

Yes have posted on there too as was advised earlier. Really helpful! I don’t have a DMP as manage all my debt fine and have income to cover it etc but I’ve been paying for a long term course and setting up my own business so it’s only recently I’ve looked again at my budget and how best to move forward with things. 

Already finding places to save from the budget tool which is brilliant.

will try find a space for small work, sadly it’s all been big mechanical jobs so far but fingers crossed I won’t have any for a while at least…! Just wish the speakers and air vents worked properly too lol 

Chris_English

forestcub said:

I don’t use cards to fuel my lifestyle, it was mainly to help at times when needed but really I could’ve probably sold things etc to get the funds. 

Could you do that now, to clear the debts, so that you don't need tio be adding them onto your car loan?

Although I understand how tempting it is to have "just one simple payment", the evidence seems to be that very often the temptation of having empty credit card accounts means that thigs start getting put on there again, and before you know it you've your car loan but are also right bhack where you were with credit card debts, and so the cycle continues.