Loan...

Shep_Cobain

Shep_Cobain

Shep_Cobain

Soldato
Joined
26 Feb 2007
Posts
3,322
Location
Blackpool
Alright people,

2 and half years ago i took out a loan with my bank of 10+ years (HSBC) - i am currently paying this off and have another 2 and a half years to go. I pay £229.00 a month and my settlement figure is £5,700.

In march last year me and my girlfriend decided to get a car together. It was a brand new one from Citroen on a hire purchase agreement. We have the car for 3 years but can return it at any point and stop the agreement. The vehicle is in my name and costs £160.00 a month. Me and my girlfriend decided we both needed a vehicle so she decided to set up a direct debit to my account paying the £160 each month for the Citroen.

I decided it would be best to get myself a car. IT costs me £10,000 on finance. I pay £225 a month and bought the car in september 2010. My settlement figure is £9300. I don't use the car often enough so i have decided i want to pay it off using a loan and sell it privately and get a run around.

That totals at £454 a month... i earn £943 a month after tax and pension etc.

If i take out a £15,000 loan at 7.4% over 5 years i can get my repayments down to approx £297saving me over £150 a month.

My girlfriend has no credit history nor is she on the electoral roll. She has an O2 mobile contract set up in my name and she has a direct debit set up for that and i have an O2 contract setup aswell which is also direct debit.

I have never ever missed a payment for anything so my credit score is good, however i applied for a Tesco loan last night as a joint application and i was declined.

Do you think this will be the case at most lenders or is it because my girlfriend has no credit history and i should have applied on my own?

I have a meeting with HSBC tomorrow afternoon but on their website and over the phone they were quoting me 14.9% apr!

If it would help a kind family member has offerend to lend me £10,000 to pay a part of the debt off to see if it would be easier to get a loan. But if i still couldnt get a loan then i wouldn't be able to pay them the £10,000 back causing all sorts of problems.

Any help would be greatly appreciated!

Thanks guys
 
If this thread doesn't make 10 pages I'm Peter Andre.

You're very trusting with your girlfriend for someone with so many loans. First advice I'd give is stop putting her **** in your name.
 
Why the hell are you getting cars that expensive on that kind of salary? Get rid of both and replace them with something cheaper. You can get a perfectly functioning 01 focus for like 2k and under and they are nice cars.

Hopefully the bank will sort you out but if you were my son I wouldn't be offering you financial help, I'd tell you to ditch both cars and get something sensible in line with your finances.

EDIt: out of idle curiosity how much of the PC in your sig did you buy outright?
 
Last edited:
I earn just over what you do, I got a 03 Corsa for £3k why are the cars so pricey? would be much cheaper to go for a second hand job
 
Do you think this will be the case at most lenders or is it because my girlfriend has no credit history and i should have applied on my own?
Click to expand...

Do you own your property or rent? If its renting then nobody is going to give you a loan for 15k as you simply dont have anything worth that amount they can take if you decide to stop paying
 
Loans to fix loans?

Cut back on your outgoings, get rid of your debt, live within your means. Sounds like you're just talking yourself into justifying borrowing more money - loans aren't meant to support a way of life, they're emergency measures to bail you out!
 
Are you kidding me? Just how many brand new cars did you intend to try and run on a salary which equates to what, minimum wage?!

And that PC?! Heck most of us in this thread earn loads more than you do and would draw the line at spending the money on a spec like that and we dont have 3 different loan/hire purchase agreements either!
 
ahhh gotta love the british way of thinking. Spend more than you can afford and worry about the fallout when it comes to the crunch.

Why did you buy expensive cars in the first place ? you have all these outgoings for loans, what are you actually saving ? (if any) if your not putting money aside what happens if the car breaks down or fails a MoT that needs work done to it. You got the money ready to spend on that ? or will it be another owell time to get another loan.

At the age of 22 its not really that good good imo to have that much debt accumalted already on what is a fairly basic wage packet.

Also as mentioned having your GFs "stuff" all in your name is well imo pretty outrageous. I wouldn't even think of doing that with my ex..... then again maybe thats why she is my ex lol ;)

oh any credit cards maxxed out to btw ?

(ok maybe that was all a bit harsh but god dammit people really should use their brains and think long term)
 
Makhaira said:
Loans to fix loans?

Cut back on your outgoings, get rid of your debt, live within your means. Sounds like you're just talking yourself into justifying borrowing more money - loans aren't meant to support a way of life, they're emergency measures to bail you out!
Click to expand...

This.

A friend of mine has been on this slippery slope for years. He justifies spending in such a messed up way it makes sense, to him. An example of this is he had a car which was only 3 years old and fully paid for costing £200 a Month to fuel. He part ex'd it, got finance for 5 years and downgraded cars as the new Monthly payment was 'only' £100 and because it's a diesel would cost less than £100 to fuel or so said the manufacturer. Long story short (too late) it cost him £150 a Month in Fuel. So he's got a lesser car on 5 years credit which costs him an extra £50 a Month, for 5 years!
 
This guy probably has a better, more expensive computer and newer cars than anyone in this thread, my head is exploding trying to reconcile this.
 
Shep_Cobain said:
My girlfriend has no credit history nor is she on the electoral roll. She has an O2 mobile contract set up in my name and she has a direct debit set up for that and i have an O2 contract setup aswell which is also direct debit.
Click to expand...

I am amazed she has a contract phone if she is not on the Electoral Roll.
 
As already said, don't get another loan and get cheaper cars to run otherwise there's the risk that things will get out of control.
 
You must log in or register to reply here.
Back
Top Bottom