Loan...

Op is living life on the edge!


The edge of drastic failure with the type of responses being read :(
 
I have to say that I did reconcile all my debts with one loan, it was the best thing I ever did. However, I had planned it carefully, cut back a lot of my spending, sacrificed a lot of expensive holidays, and new cars/toys. As a result I got rid of the several k's worth of debts much quicker as my outgoings decreased, I was able to put more money aside, and went to discuss with the bank the possibility of increasing the payback. It took a couple of years to clear - it was my fault for clocking up the debts - however now, I'm back to having holidays and buying toys for myself and don't have to worry about what's going in and out of my account as much as I used to. I know my self control though, I know I can stop spending money on items I don't need and I know I'm able to make the sacrifices needed to keep my debts low.

All I would say is, if you think you'll be able to be sensible and you want to reconcile your debt - fine, but I'd certainly review your life and spending habits and get some advice from a bank or financial advisor before heading off on such a venture. Debts and money issues cause a lot of problems.
 
Freefaller said:
I have to say that I did reconcile all my debts with one loan, it was the best thing I ever did. However, I had planned it carefully, cut back a lot of my spending, sacrificed a lot of expensive holidays, and new cars/toys. As a result I got rid of the several k's worth of debts much quicker as my outgoings decreased, I was able to put more money aside, and went to discuss with the bank the possibility of increasing the payback. It took a couple of years to clear - it was my fault for clocking up the debts - however now, I'm back to having holidays and buying toys for myself and don't have to worry about what's going in and out of my account as much as I used to. I know my self control though, I know I can stop spending money on items I don't need and I know I'm able to make the sacrifices needed to keep my debts low.

All I would say is, if you think you'll be able to be sensible and you want to reconcile your debt - fine, but I'd certainly review your life and spending habits and get some advice from a bank or financial advisor before heading off on such a venture. Debts and money issues cause a lot of problems.
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A £10k car on finance in one's early twenties doesn't give me much hope for financial acumen.
 
Freefaller said:
I have to say that I did reconcile all my debts with one loan, it was the best thing I ever did. However, I had planned it carefully, cut back a lot of my spending, sacrificed a lot of expensive holidays, and new cars/toys. As a result I got rid of the several k's worth of debts much quicker as my outgoings decreased, I was able to put more money aside, and went to discuss with the bank the possibility of increasing the payback. It took a couple of years to clear - it was my fault for clocking up the debts - however now, I'm back to having holidays and buying toys for myself and don't have to worry about what's going in and out of my account as much as I used to. I know my self control though, I know I can stop spending money on items I don't need and I know I'm able to make the sacrifices needed to keep my debts low.

All I would say is, if you think you'll be able to be sensible and you want to reconcile your debt - fine, but I'd certainly review your life and spending habits and get some advice from a bank or financial advisor before heading off on such a venture. Debts and money issues cause a lot of problems.
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Personally I think this is sound advice. I would also recommend moneysavingexpert.com , there are some cynical people on ther who aren't very helpful but most of them are fine. The main site also has loads of really helpful info regarding debt and how to work your way out of it.

I know its nice to have new p[leasures and try and have nice things, but it will all catch up with you if you don't have the right finances to sort it all out. Relying on family members to help you out is something I'd avoid personally and just remember if you get into a real pickle, then its there as an emergency, but if you canh, sort it out without family help
 
Leave him to it, his attitude stinks, get further into debt and we will all await the:

"I'm ****ed thread, what can I do?"
 
To clarify:

So current debt is: £5700 (bank loan) + £9300 (car) = £15'000
You currently pay: £229 + £225 = £454 a month

You want to get a £15'000 loan to pay off (in full) the bank loan and car, so you can then sell the car and downsize (?) to a smaller car?

I can't actually see all that much of a problem with this situation. If there's no penalty for paying off early on both loans and the new loan would have a more favourable interest rate then it'd surely work out cheaper overall, especially if you use the 'profit' from downsizing cars to pay off some of the new loan.


Am I understanding the above correctly?
 
Phil99 said:
To clarify:

So current debt is: £5700 (bank loan) + £9300 (car) = £15'000
You currently pay: £229 + £225 = £454 a month

You want to get a £15'000 loan to pay off (in full) the bank loan and car, so you can then sell the car and downsize (?) to a smaller car?

I can't actually see all that much of a problem with this situation. If there's no penalty for paying off early on both loans and the new loan would have a more favourable interest rate then it'd surely work out cheaper overall, especially if you use the 'profit' from downsizing cars to pay off some of the new loan.


Am I understanding the above correctly?
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It does look that way.
 
The issue not downsizing to the appropriate car.

He has no money, the 50% remaining is hit account is not his money, he owes 15k elsewhere.

He should be driving around in a £500-1,000 car (and even that's a luxury in his position) not looking to get yet another new-ish car that in reality won't save him much, particularly if it's another PCP!
 
Morba said:
It does look that way.
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In that case, if he sells his car for, say, £8'000 and buys a new one for £2'000, puts that £6'000 towards paying off his loan he'll end up with a debt of £9'000 at an interest rate of 7.4% instead of a debt of £15'000 at a higher rate.

Assuming a 'run around' doesn't mean another car for £10'000 I can't see a flaw in this plan?
 
Phil99 said:
In that case, if he sells his car for, say, £8'000 and buys a new one for £2'000, puts that £6'000 towards paying off his loan he'll end up with a debt of £9'000 at an interest rate of 7.4% instead of a debt of £15'000 at a higher rate.

Assuming a 'run around' doesn't mean another car for £10'000 I can't see a flaw in this plan?
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I know, i said the same earlier. OP has previous though which is more what people are going on about I think, that and 'worst case scenarios'. Doesn't help that the OP is posting like an ignorant child mind, that never gets good responses :p
 
I rarely post on OcUK but I just had to login and reply to this beautiful specimin of a man.

You are the exact sort of person that will be calling up debt management agencies and posting on forums pleading for help.

'If you don't have the money, don't buy it'.

I ******* hate people that purchase items on finance, take out loans and just generally purchase items that normal income wouldn't allow.

LIVE WITHIN YOUR MEANS.
 
Bleek said:
The issue not downsizing to the appropriate car.

He has no money, the 50% remaining is hit account is not his money, he owes 15k elsewhere.

He should be driving around in a £500-1,000 car (and even that's a luxury in his position) not looking to get yet another new-ish car that in reality won't save him much, particularly if it's another PCP!
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From the OP:

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.
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I took it as meaning he already has the new car and wants to downsize as he's not using it enough. I don't think he's mentioned buying another new car unless I've missed something?

edit: I'm ignoring the Citroen @£160 a month as, if the OP is to believed, his GF is paying that off and it can be cancelled at any time; if this is the case it's only affecting his credit report, not his actual situation.
 
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