Query for finance experts

Jimmeh · 17 Nov 2017 at 09:44

You state your intention of having her manage your own money, which I understand. But at least let her do it in the most efficient way. Have her take out a 0% credit card and put whatever she can of her overdraft onto it.

It’s then up to her to pay everything back, but at a reduced rate of interest. She is still accountable, but at least she is not being charged interest she needn’t pay.

bainbridge · 17 Nov 2017 at 12:01

I appreciate the benefits of a 0% balance transfer but there are 2 problems:

1. None of the offers will allow her to pay off the osb at an affordable monthly amount before the interest free period expires.

2. She has a fraud marker and when trying to obtain credit she has to show ID

englishpremier · 17 Nov 2017 at 12:06

I don't understand why it is a problem with her showing ID, does she not have any or something?

You make an application, they get back to you saying they need ID, you give a copy of your passport and all is good. OK some places might want a certified copy, but you can get that for £5

Vonhelmet · 17 Nov 2017 at 12:08

Can you even transfer an overdraft onto a credit card? I don't know, I've never had to do a balance transfer like this. I thought it was only from an existing credit card. Happy to learn if I'm wrong...

sigma · 17 Nov 2017 at 12:10

amigafan2003 said:
So let her then.

Yeah don't bother offering advice to someone who is clearly struggling. Just point, laugh and claim superiority.

LOAM · 17 Nov 2017 at 12:12

The_Abyss said:
The bank is far from weary. It will be salivating at the prospect of consolidating that overdraft into a bank loan so that the overdraft can be run up again!

This^ any consolidation to clear the OD MUST be coupled with the removal of her OD facility otherwise in a couple of years time she's going to find herself with a loan and another 5K OD.

touch · 17 Nov 2017 at 12:18

bainbridge said:
I want her to manage her own money.

Why would it make any difference whether it's you who gives her the loan of the bank? She'll still have to pay it off and will still be managing her own money?

Or would you rather not take the risk but you think the bank should?

Hades · 17 Nov 2017 at 12:24

touch said:
Why would it make any difference whether it's you who gives her the loan of the bank? She'll still have to pay it off and will still be managing her own money?

Or would you rather not take the risk but you think the bank should?

Of course the bank should. They are selling a product based around risk.

bainbridge · 17 Nov 2017 at 13:49

LOAM said:
This^ any consolidation to clear the OD MUST be coupled with the removal of her OD facility otherwise in a couple of years time she's going to find herself with a loan and another 5K OD.

englishpremier said:
I don't understand why it is a problem with her showing ID, does she not have any or something?

You make an application, they get back to you saying they need ID, you give a copy of your passport and all is good. OK some places might want a certified copy, but you can get that for £5

Yes she had passport and driving licence etc but I suspect (and cannot substantiate this) that the fraud marker will launch a referral in most cases and by the time an agreement comes back the rate on the loan offer will be hiked up. Online lending is fickle in my experience. At least at the bank there's am offer on the table.

bainbridge · 17 Nov 2017 at 13:51

LOAM said:
This^ any consolidation to clear the OD MUST be coupled with the removal of her OD facility otherwise in a couple of years time she's going to find herself with a loan and another 5K OD.

This is part of the deal, no overdraft.

bainbridge · 17 Nov 2017 at 13:56

Vonhelmet said:
Can you even transfer an overdraft onto a credit card? I don't know, I've never had to do a balance transfer like this. I thought it was only from an existing credit card. Happy to learn if I'm wrong...

Apparently you can with a money transfer card. It's a credit card with the option to transfer money on your credit limit directly into you bank account and then if you pay off the card within the interest free period your laughing.

That's my understanding.

Steeps · 17 Nov 2017 at 13:57

I had the same issue when trying to take out a loan with a supermarket (much better rate than the bank), got a letter confirming my application had been accepted at the rate I had applied for, but then the small print letter came through for me to sign and the rate had been increased by 50% for no reason. Reapplied through Zopa (even with a mark saying I had a loan application outstanding elsewhere for quite a chunk) with a much better rate that I could accept immediately, the crazy thing is I could have accepted both loans at the same time.

bainbridge · 17 Nov 2017 at 14:06

Steeps said:
I had the same issue when trying to take out a loan with a supermarket (much better rate than the bank), got a letter confirming my application had been accepted at the rate I had applied for, but then the small print letter came through for me to sign and the rate had been increased by 50% for no reason. Reapplied through Zopa (even with a mark saying I had a loan application outstanding elsewhere for quite a chunk) with a much better rate that I could accept immediately, the crazy thing is I could have accepted both loans at the same time.

My loan is with Zopa, advertised at 4.5%. At the end of the application process it had risen to 9%. After looking at other providers I went back to Zopa and they offered me 5.6% based on identical details!

xGBHxPegasus · 17 Nov 2017 at 14:25

bainbridge said:
Apparently you can with a money transfer card. It's a credit card with the option to transfer money on your credit limit directly into you bank account and then if you pay off the card within the interest free period your laughing.

That's my understanding.

You are correct, its basically a loan where you just transfer the balance onto the card. If you can't pay it off in the specified period (say 30 months) then just do it again once the interest free period is up and cancel that card, I did this with Tesco and Salisbury's credit cards.

From what I understand a lot of people do this (although I could be wrong).

Dis86 · 17 Nov 2017 at 14:37

sigma said:
Yeah don't bother offering advice to someone who is clearly struggling. Just point, laugh and claim superiority.

But she's not the one seeking advice. He is. On her behalf. That's not her sorting it out herself. That's him doing it for her.

sigma · 17 Nov 2017 at 14:40

Dis86 said:
But she's not the one seeking advice. He is. On her behalf. That's not her sorting it out herself. That's him doing it for her.

bainbridge said:
My gf created this situation, but I want to help her get herself back on track so any constructive comments will be appreciated.

Dis86 · 17 Nov 2017 at 14:43

congrats, you can quote.

So can I

bainbridge said:
I want her to manage her own money.

sigma · 17 Nov 2017 at 14:48

Dis86 said:
congrats, you can quote.

So can I

Thanks.

Well it's not hard to work it out is it? He wants to help her manager her own money. Some people don't see the obvious things.

Jimmeh · 17 Nov 2017 at 15:06

bainbridge said:
I appreciate the benefits of a 0% balance transfer but there are 2 problems:

1. None of the offers will allow her to pay off the osb at an affordable monthly amount before the interest free period expires.

2. She has a fraud marker and when trying to obtain credit she has to show ID

So you take out the 0% card? She is still responsible for paying off the debt.

If you don’t trust her, that’s a whole different thread.

englishpremier · 17 Nov 2017 at 15:25

Remember the advertised only has to be offered to something like 50% of accepted applicants.