Loans!

[Karl619]

How many of you have taken out a loan and for what purpose?

 

I really want to buy a car and do this BUNCAC paid work in New Zealand scheme but it costs several grand for both and it would take me months to save up so I was thinking of taking out a loan for about £7,500 .

 

However, as soon as I mention the purpose of the loan they refuse the lending.

 

Does anyone have any ideas on what companies are more understanding. I'm certain I'll be able to pay off the £150 a month .

 

If I say I'm getting the loan for a car and actually spend it on this trip it would count as felony surely!?

 

It's not like it's just a jolly abroad. I'm actually going to get paid work out there and it's only for a couple of months and when I get back home I will buy this car.

 

I have a good credit rating, ( only have one credit card nearly paid off, no store cards) and I'm really rather sensible with money.

 

So any advice please from you financial types out there...? Should I just give up on my plans? I know I could just save up money but I want to do these things as soon as possible!

 

Also what are your experiences with loan companies?

[Mr_Odwin]

I don't have much experience of being refused or shopping around. I took out loans in a happier financial time.

 

After I graduated the wife and I were a few grand into our overdrafts. We took out a 2 year loan to pay them off. It worked out really well. Much later I took out a mortgage and the bank owns my soul.

 

Anyways, I'd head over to moneysavingexpert (assuming you are UK based, but you say felony so maybe not) and check out the appropriate section.

[Happenstance]

I plan to never take out a loan unless I absolutely have to.

 

My sisters boyfriend got a loan when he was younger for something stupid like a new tv or something and didnt bother to check it through. Turns out it was something like 65% interest on it. That was hanging over him for years until he met my sister and she sorted it all out for him. Now the guy doesnt even keep his own debit card, just gave it to her and she basically gives him spending money each week (not her idea incase you think shes evil)

[Karl619]

No I am UK based, I just like American words haha

[Will]

I think you'll find it very hard to get a loan with the intention of using it to move abroad, even if it is only for a short time. Age could also be a factor, I'm guessing your not too old if you're able to move away for a year.

 

Why do you want a car and to pay for this trip? Couldn't you take out a smaller loan for the car then sell it when you intend to move? At least the bank has some collateral to protect against loss with a car.

 

Myself, I took out a £5k loan a few years ago just to cover uni debts, got 3 more payments left on that. Then took out a £20k car loan last year - still a long way to go on that one. Credit card now has something ridiculous like a £15k limit but I never use that except in absolute emergencies and it's paid off in full every month.

 

I think your best bet is to buy the car and save for the trip.

[Nintendohnut]

I have a huge student loan that is gaining interest slowly but surely. When I graduate in a few months I'll have over £20,000 owing. So yeah, no more loans after this one. I never really want to be in debt again after this. Mortgage is different I think, I expect to need one of them, and I don't count it as a loan, but my philosophy is just that if you can't pay for it now, be patient and save up until you can.

[Jimbob]

Havn't taken out a loan in my life, and i intend to not take out a loan if i can help it at all. Don't like the feeling of oweing more money than i borrowed.

[Cube]

I have my student loan (which in my current job situation isn't anything to think about).

 

I also used my credit card to pay for rent which put me in quite a bit of a pickle. Not that I had much choice. In the January that I signed the contract it seemed fine. However, I had to drop out of uni (i.e. I was failing the course with no hope of recovery) which resulted in the loss of my student loan (which is what was going to be used to pay the rent). I was unable to get a job in the time and with no job I couldn't really get a loan. Housing benefits wouldn't have been much use, either, as it's a "Pay for 4 months in one go" kind of rent. However, this caused a load of long-term problems. Luckily I'm now past them. I've been working for a year with low rent, no bills and low spends and I've just about got to the point where the money I earn is my money.

 

So I'm going to stay clear from any kind of loan from now on.

[McPhee]

It's expensive and difficult to chase people for money owed over international borders. That's why nobody wants to give you a loan to work away for a year. You'll just have to save up like most people who do these courses. Maybe take out a loan on the car, save up, pay that off and then start saving for the trip. and sell the car before you go to generate extra income? That's how I'd go about it. Means you could be in excess of a year away from going to NZ, but it'll be worth it.

[Ashley]

The Careers and Personal Development Loan may cover your plans if you can justify how it will help your future.

 

I have about £20,000 grand student loan. HUZZAH! And I'm going to have to take out the above for my postgrad. Somewhere £3,000+ depending on how much I can work over the summer.

 

Had to laugh earlier. My friend said "loans don't matter when you're dead" to try and suggest its not something you should worry too much about. I just interpreted as I should end my life.

[ReZourceman]

I have about £20,000 grand student loan.

 

Twenty million pounds?

[Raining_again]

I'd say its pretty unlikely the way the "credit crunch" is. People just aren't getting loans like they used to... So you'll just have to do what everyone else does; save like mad til you can afford it.

[Ashley]

 

Twenty million pounds?

 

Grand as an adjective. As in "isn't it grand that I have so much fucking debt?"

[Charlie]

Don't spend money you don't have. Unless you absolutely need a car there's no reason to take out a loan to get one. I know they're useful but think how much money it will cost you in the long run.