Soldato
I had one at 2.8% with Sainsburys a while back, paid off now, but that was when interest rates were lower.
Personal loan £20k <3%
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Soldato
Equity release from your mortgage? I've recently done that for 20k at 2.2%
It's over 20years but the plan is to repay it in around 4 and repayment fees are minimal with FD.
It's over 20years but the plan is to repay it in around 4 and repayment fees are minimal with FD.
Soldato
Just to check because I don't think it's been mentioned or asked, but what do you need it for?
If it's for a purchase (as opposed to something like building work) you might be better off looking at a few credit cards instead if your credit score is any good.
If it's for a purchase (as opposed to something like building work) you might be better off looking at a few credit cards instead if your credit score is any good.
Caporegime
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Other than if you get hit by a big bill and then need a second loan to pay for that.
Boiler beaks or engine goes on car, etc. Roof needs replaced on house.
There are potentially millions of downsides to owing £20k to someone.
I have paid cash for everything in my home, paid cash for car too. The only loan I had was for solar panels which I paid off early and within a few months I wanted to get it before FIT was reduced so made sense to buy now and pay off as soon as possible, an avr as there was an offer at the time and the mortgage. Even rental property I own was paid cash.
The most important thing is what does he need the money for. Without knowing that you could never comment on whether it would be a good idea taking a loan or saving instead. Also without knowing his personal situation and finances either.
Caporegime
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I'm guessing he needs £20k to get a mortgage. He hasn't said what the cash is for.
Caporegime
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Look at the dates lads, this is a thread necro.
Soldato
Who cares about the dates? I wanna tell everyone about how they're living their lives wrong dammit
Exactly, if you can't afford to buy your Gulfstream in cash you're doing it wrong!
Permabanned
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I guess a sales guy or a broker bumped the thread lol 
he got k-lined lol
he got k-lined lolIt's the one thing i wish i never did, i was literally press-ganged into it by my ex-wife before we split to pay off credit cards, but i knew she would refill the cards and then we'd be back to square with paying a loan on top of that. What a stupid woman. The only loan you should ever have is a mortgage
Paying interest. losing money.
Interest only becomes an issue when you pay the absolute minimum. With decent APR rates and paying a good chunk then the interest will be negligible.
Soldato
Even at the lowest rates available and the shortest loan terms, the OP's example is still going to cost several hundred pounds in interest.
Whether that's a "negligible" amount or not is up to you I suppose.
To everyone saying you should never have a loan, ever - Get a grip.
Responsible lending with a good product is a perfectly acceptable way to bridge a financial gap.
I got a relatively small personal loan to buy a family friendly car I would have otherwise struggled to pay outright. The interest paid over 3 years is absolutely minimal and is far outweighed by the fact I could get the car I wanted right there right then. A very small price to pay for massive benefit.
Responsible lending with a good product is a perfectly acceptable way to bridge a financial gap.
I got a relatively small personal loan to buy a family friendly car I would have otherwise struggled to pay outright. The interest paid over 3 years is absolutely minimal and is far outweighed by the fact I could get the car I wanted right there right then. A very small price to pay for massive benefit.
We have a Mr perfect in the house fells lol
Soldato
Indeed.
Some people (and for some, read most) don't have tens of thousands to hand and if they need something done (not talking wanting a new phone) then paying off X a month over a period of time is the only way to afford large sums.
As long as you know what you are getting yourself into, are not over extending your finances or using loans etc just to live then there is nothing wrong with using a loan to deal with large payments.
Soldato
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Yep, and it isn't always to do with credit scores either. Mine is 999 with low overall debt. Applied for a 10k loan at 2.9% a couple of years back and got declined.
The next time I applied for a loan, I had more debt as I had more on the credit card at the time and got accepted.
They also say any rejections get logged, yet when I queried this with experian they had no record of me ever being declined for anything.
I've now become debt free (well, still have the mortgage) and enjoying that feeling whilst it lasts (new kitchen at some point though, so who knows).
Oh look at that, feel better after you're little comment big man?
Or perhaps I had parents that gave a **** and taught me good money management because we had to look after the pennies due to be quite poor growing up. It's why a strongly advocate financial education in schools.
Hence you should be investing rather than saving.
There is nothing wrong with borrowing money, i don't know why you frown upon it, i put a new kitchen in last year borrowed some money to speed up the works, no big deal. all paid off within a year
Associate
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There is nothing wrong with borrowing money, i don't know why you frown upon it, i put a new kitchen in last year borrowed some money to speed up the works, no big deal. all paid off within a year
100% this.
I'd add that good money management includes the use of debt at times, like a mortgage for example.