Loan...

Robi said:
Why do accountants think it's ok to offer bad financial advice? It's because they know more than you, have more experience than you and are simply far more intelligent than you.
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How can you even say that. I mean that is by far the most arrogant post in this thread in my opinion.

For all you know the OP and most of the other posters on here may very well be far far more intelligent.

I have an accountant, the only reason I hire him is because I simpily do not have the time to manage my assets with my own work load. I could quite easily manage it myself if I had the time.

You cannot just assume that because you are in a particular role you automatically are the more intelligent person.

But man has this thread de-railed so much :p (yes even I have pitched in OH the irony)
 
ColdAsIce said:
I don't think that all PCP car deals are a bad thing really. I currently have one on a Toyota Yaris, which I pay £180 for 3 years and then decide to either buy the car outright or return it to Toyota.

I went through years of buying cheap cars thinking it would be better but in reality it was more trouble than it was worth.

First was a Ford Escort that I payed just over £1000 for, got hit with two big M.O.T bills and paid something like £180 road tax, car insurance was more expensive on it also and with it being an older car the fuel economy was terrible.

Then I took out a small bank loan of about £3000, back when interest rates were as low as 6% this paid for a Renault Megane and my car insurance for the year. Again the fuel economy wasn't fantastic and I had to replace the coils twice. Was again hit with two fairly large M.O.T/Service bills for general work on the car and the road tax was again fairly expensive.

Also during the winter months both cars would often stutter on startup and the escort would sometimes stall. Perhaps I was unlucky on my choice of older cars but fact is I ran into huge problems with both of them and this left me in a bad situation as I 100% need a car for work. So when I ran into problems, I had to take holiday days to get them sorted.

I am quite lucky in the fact my brother works for Toyota, so the price of the car was lower than usual and also I get the service completed at cost price. Great news is my insurance is lower, I only pay £35 a year on road tax and during the bad winter months I didn't have to worry about the car being unreliable etc.
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You made bad car choices - an old escort and a renault megane are NOT classed as reliable cars. 30 mins of web research could have told you that.

You could have spent that £3k bank loan on an older Toyota and had completely trouble free motoring....in fact if you knew someone who worked there you could surely have got a good 2nd hand car at trade price and cheap servicing.

PCP isn't necessarily bad in all circumstances, but you absolutely don't need to spend a lot of money to get a reliable car if you make the right choices.

As for the OP, your level of borrowing is very high even for your anticipated salary in a couple of years. You need to either bit the bullet and stick to your agreements now or go to CAB or debt counselling service. Signing up to a 15 year loan is crazy for whats essentially disposeable stuff - how will finance your next car, or do you intend keeping them for 15 years?!
 
The Halk said:
They are very good, you're quite right Third Opinion. But Shep isn't anywhere near needing their help. He has no grounds to ask for special treatment for lenders, or to be making proposals for reduced payments.
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The only thing I was thinking was doing a personal budget sheet to show them he is spending over 50% of his take home salary on debt repayment.

I am quite surprised they allowed him to borrow so much on his salary. Taking a loan out to pay another loan is bad in my opinion. Maybe talk to lenders first and explain your situation.
 
He knows that already... a great deal of people have already laid into him, but he clearly already knew he'd made a mistake... that's why the thread is there.

Taking out another loan and speaking to lenders first is one and the same thing. He's going to HSBC today he said, and before he applies for a the loan he'll have to explain things in detail. Loans have changed greatly over the past 5 years. 5 years ago it really was as simple as asking for a loan and getting a decision. These days you need to go through income and outgoings lists and really check affordability properly.
 
Sagalout said:
You made bad car choices - an old escort and a renault megane are NOT classed as reliable cars. 30 mins of web research could have told you that.

You could have spent that £3k bank loan on an older Toyota and had completely trouble free motoring....in fact if you knew someone who worked there you could surely have got a good 2nd hand car at trade price and cheap servicing.

PCP isn't necessarily bad in all circumstances, but you absolutely don't need to spend a lot of money to get a reliable car if you make the right choices.
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He didn't work for Toyota when I purchased the other two cars.
 
Pudney@work said:
Accountants DON'T think it's ok to give financial advice. Accountants CAN'T give financial advice unless they're regulated by the FSA. What kind of trainee accountant are you to not realise this?!
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You've misunderstood everything i've just said. Simply put, an accountant can give better general unqualified financial advice than say a 10 year old boy doing a paperound. Yes?

An accountant can't give professional advice because he's not qualified to do so, but it's likely that he knows more in general than someone who works in a job completely unrelated to finance.
 
Shep_Cobain said:
Off to the bank. Will keep you all posted...
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wtf man, why have you been buying brand new cars i earn more than double that and have no debt, yet my car is still 8 years old, the newest car i have ever had was 3 years old. seriouly stop taking out loans.

and you know the bit about your gf not having any credit history? well thats because you take out mobile contracts in her name... again why!
 
There's now over 400 posts Jim, many of them are having a go at the original poster for a mistake he acknowledged in the very first post of the thread. Why do people feel it necesary to chip into a thread like this just to have a go at someone who is admitting and error and asking for advice?
 
Adsta said:
How can you even say that. I mean that is by far the most arrogant post in this thread in my opinion.

For all you know the OP and most of the other posters on here may very well be far far more intelligent.

I have an accountant, the only reason I hire him is because I simpily do not have the time to manage my assets with my own work load. I could quite easily manage it myself if I had the time.

You cannot just assume that because you are in a particular role you automatically are the more intelligent person.

But man has this thread de-railed so much :p (yes even I have pitched in OH the irony)
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I'm not arrogant, or even massively intelligent. I never once said that. I know for a fact that the majority on these boards are more intelligent than me.

Sorry, I was more referring to knowledge about a chosen subject than intelligence. An accountant is more likely to know more about finance in general than a bar manager.
 
The Halk said:
There's now over 400 posts Jim, many of them are having a go at the original poster for a mistake he acknowledged in the very first post of the thread. Why do people feel it necesary to chip into a thread like this just to have a go at someone who is admitting and error and asking for advice?
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Because this is the MoFoing internet. and this is OCUK not a money advice website? take your pick
 
Robi said:
You've misunderstood everything i've just said. Simply put, an accountant can give better general unqualified financial advice than say a 10 year old boy doing a paperound. Yes?

An accountant can't give professional advice because he's not qualified to do so, but it's likely that he knows more in general than someone who works in a job completely unrelated to finance.
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No, I've understood what you've said and I believe you to be wrong. Accountants understand the technical nature of debt in relation to the financial scheme of things, they are no better at giving practical advice than any other person. They also understand their own limitation and any half decent accountant will not give financial advice.

Oh, and as an accountant you should understand that debt is in general terms a good thing. It has a massive benefit towards cash flow and ultimately that is where a business thrives or fails.
 
with any luck if he's going to talk things over with the bank maybe they will give him good advice.

THen again, they may tell him to get another loan so they can make lots of money out of him ..... :(
 
MrLOL said:
with any luck if he's going to talk things over with the bank maybe they will give him good advice.

THen again, they may tell him to get another loan so they can make lots of money out of him ..... :(
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The one thing he isn't likely to get is a good rate.
 
Well...I know someone who went to the bank to get more help...ended up just getting their account frozen until the bill was paid off :p
 
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