Irrelevant.
It's got nothing to do with what his job he has, its his lifestyle/spending choices regarding how much he earns that's the issue.
Loan...
- Thread starter Shep_Cobain
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Irrelevant.
It's got nothing to do with what his job he has, its his lifestyle/spending choices regarding how much he earns that's the issue.
900 a month is after deductions. After tax, after NI. He also said pension. We don't know but that could also include employee benefits (I have some that are part funded and come out before tax, for example), sharesave, etc etc. He could easily be on 15K+ a year, and for a young person that's not a horrible salary.
The sad part isn't the salary he's on, it's the salary he could be on.
If you spend 300 on debt repayment per month, that's over 400 you need to earn to cover it. That's 5K a year of your salary down the drain. I've always told people who are repaying debts that when they finish they get the same effect as a pay rise, and it seems to help them put it into perspective.
The sad part isn't the salary he's on, it's the salary he could be on.
If you spend 300 on debt repayment per month, that's over 400 you need to earn to cover it. That's 5K a year of your salary down the drain. I've always told people who are repaying debts that when they finish they get the same effect as a pay rise, and it seems to help them put it into perspective.
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Well if you add all your current out goings etc the bank probably decline on affordability. They dont take into account that you'll spend less in order to get the loan. They have to be reasonable lenders and if they think things would be tight, they wont do it. Best apr on a 15k i've seen is 8.6% :/
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Not many people on £15k a year are going to have a pension contribution so huge that it knocks take home down to 900 quid. Besides, does this guy really strike you as the sort to have a high contribution pension on the go?
He just isnt paid very well, yet thinks he should have all the lifestyle accessories of a higher salary.
They do take it into account.
As for Fox - I agree. I don't expect he is on a fantastic salary, but we shouldn't jump to conclusions.
As for his lending... he's made one real mistake and that's the 10K car loan. Everything else seems reasonable. I think we're being a bit harsh. We should be realistic with him and tell him it like it is... but having a go at his lifestyle when we don't really know a great deal about it isn't fair.
We know it involves 50% of his takehome going out to various lenders, we know he has a PC most of us would only dream about, and we know there isnt a car on his drive older than a few months.
Trouble is the loan companies wont touch him.
They will not loan £15,000 to somebody who is already £15,000 in debt and on minimum wage.
His only hope is to start cutting back and selling stuff like his PC to pay the bank loan off, and negotiate some way of getting them to take the car back.
He might be as well just cancelling the payment on the car and letting them sieze it. It will **** his credit record, but then not being able to get himself into more debt might force him into having some self control with what debt he takes out.
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OP If you do get this loan through hsbc or who ever please tell!
I agree - I do not expect someone to lend him the cash.
I think selling the PC would be a terrible waste of cash. The value to him of the PC is likely far higher than the resale value.
He should indeed see if he can cancel the finance on the 10K car.
He should not just stop paying it. Debt collectors will come in, and even if they do seize the car (I don't think they will) they'd look for additional costs as well.
The problem he has, I guess, is that if he sells the 10K car he'll still owe more money than the finance, and be without a car. So he either hangs on to it and keeps up the high payments, or he tries to borrow money from the family member to pay off the remainder of the credit after he sells the car, plus enough to get himself a car....
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suppose though if he sold the car, which I'd assume would be less than 10k now, he could re pay his loan and use the rest of the cash to help with the repayments towards the finance etc
If he sold the car he could pay off the HSBC personal loan, and have a little left over to buy a car for himself... I hadn't thought of doing it that way. He'd then only have the finance on his Mrs car and his own car to pay...
tbh the best thing the OP can do is
1) speak to a charity like national debtline for some free impartial advice.
http://www.nationaldebtline.co.uk/agency_information.php
2) register and post on money saving expert
http://forums.moneysavingexpert.com/forumdisplay.php?f=76
Good luck.
the car isn't his to sell. He need to speak to the finance company and come to some agreement to give it back and take the hit that will no doubt follow with the early repayment charges.
1) speak to a charity like national debtline for some free impartial advice.
http://www.nationaldebtline.co.uk/agency_information.php
2) register and post on money saving expert
http://forums.moneysavingexpert.com/forumdisplay.php?f=76
Good luck.
the car isn't his to sell. He need to speak to the finance company and come to some agreement to give it back and take the hit that will no doubt follow with the early repayment charges.
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Yeh it wouldn't be all that bad if you didn't have your girlfriends things in your name too. Lets hope you don't split up!!
christ i took out two phone contracts and sky and thought id taken on too much debt, decided against the car loan and very glad i did.
if you can downsize the repayment and total of the new loan then great stuff but the thing is are you going to go through this just to take out more debt in the end as you will have leaway on your monthly income again, you need to look into tackling your mentality towards possessions as well as your attitude towards money.
dont' mean to sound condescending or on a high horse just some good advice.
if you can downsize the repayment and total of the new loan then great stuff but the thing is are you going to go through this just to take out more debt in the end as you will have leaway on your monthly income again, you need to look into tackling your mentality towards possessions as well as your attitude towards money.
dont' mean to sound condescending or on a high horse just some good advice.
I don't think you're right. From what he said it wasn't finance on the car, it was a loan. I'm only guessing of course, but he said the Mrs car was finance, but didn't say his was.
If it was a loan for the car then it's not secured on the car.
some usefull advice :
http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php
Looks as though he's best off taking that family member up on the offer of the loan. Selling the car and then paying them back.
i understood he had car finance secured on the car rather than 2 unsecured loans.
http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php
Looks as though he's best off taking that family member up on the offer of the loan. Selling the car and then paying them back.
i understood he had car finance secured on the car rather than 2 unsecured loans.
I've seen that frequently. Personally I don't think people should join their finances without marriage.
If they do it at all they should have a mortgage with a reasonable deposit each so that there is at least enough equlity to sell up and split. I've seen way too many sob stories where a relationship breaks and one partner gets financially shafted.
The family member is only lending them the money in order for him to pay off some loans before he applies for a loan to repay the family member - at least that's the only way the OP reads...
That link is for car HP, which I don't think he has.