Bank loan for Property repairs and Overdraft repayment?
Comments
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Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.
Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.0 -
Get the repairs done and then sell the property which will give you the money to clear your overdraft. You cannot afford to be a landlord.0
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Get the repairs done and then sell the property which will give you the money to clear your overdraft. You cannot afford to be a landlord.
I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.
The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.0 -
Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.
Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.
True, but my logic is to eliminate the overdraft rather than paying each month just to be in it. Whereas, if I'm paying off a loan that I've borrowed, at least it's going towards something and paying it off?
Paying for the od interest isn't getting me anywhere and just indefinitely keeping me there.0 -
Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.
Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.
At the same time, paying off a bank loan for any more than three years I think is a bit ludicrous...0 -
konn1ch1ha wrote: »I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.
The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.
Its a long finamcial hurdle.
If nothing has been sorted in the last 4 months why not sell the property or get them done then sell as been mentioned.0 -
konn1ch1ha wrote: »I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.
The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.
The flat has hardly cost you anything so far yet you don't earn enough from it to pay a simple £2k bill that you've known about for ages. God help your tenant if the heating goes or something else needs repaired in the property.0 -
konn1ch1ha wrote: »True, but my logic is to eliminate the overdraft rather than paying each month just to be in it. Whereas, if I'm paying off a loan that I've borrowed, at least it's going towards something and paying it off?
Paying for the od interest isn't getting me anywhere and just indefinitely keeping me there.
But if you transfer the debt to a loan you be paying more interest.
I can understand if you want it to be paid back on a repayment basis because you have no willpower to clear an overdraft, but from a financial standpoint it's stupid.
Pay down the overdraft, then get rid of it and move onto trying to put aside some savings before you need to do something else to the flat.
Borrow what you need to get the repair done, then bring your salary up and your costs down, until you're stable. Even if that means moving somewhere cheaper and taking a shelf stacking job in Tesco.0 -
But if you transfer the debt to a loan you be paying more interest.
I can understand if you want it to be paid back on a repayment basis because you have no willpower to clear an overdraft, but from a financial standpoint it's stupid.
Pay down the overdraft, then get rid of it and move onto trying to put aside some savings before you need to do something else to the flat.
Borrow what you need to get the repair done, then bring your salary up and your costs down, until you're stable. Even if that means moving somewhere cheaper and taking a shelf stacking job in Tesco.
This the best and most constructive answer out of all of the threads.
Thanks.0 -
konn1ch1ha wrote: »This the best and most constructive answer out of all of the threads.
Thanks.
I thought this post below pretty much said the same thing, only 4 months earlier, but perhaps only now you are willing to listen?
http://forums.moneysavingexpert.com/showpost.php?p=72051684&postcount=37
So given that you agree with the advice, are you going to give up your musical hobby / living in London?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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