Loans n stuff :(

[Haggus]

Hey peeps, just looking for some advice really. Here's my situation:

I took out 5k last october for my car and my other car. Was a mug and brought two cars in a few months which really didn't help my financial situation. So i'm still paying off the loan and i've had my bank on the phone this morning saying we can give you a better rate and still give you money. From what I understand they are going to give me another loan with a better rate but the same amount of monthly payments and MORE money. Because my credit rating has gone up they can give me the same loan but like £1700 aswell as paying the same amount of money back each month. I think it goes something like that anyway.

I'm really confuzzelled on all this rate percent and intrest crap so is there anyone out there willing to give out some free tricks of the trade and help me out in this situation.

thanks in advance

 

[Takhasis]

DON'T - they're just after putting you even further into debt.

The sneaky way of sorting stuff like this out is keep an eye out for the credit cards with 6 months interest free - use them to pay off bills etc, then CUT them up after 6 months and find another.

 

[Haggus]

I'm 19 people wont give me credit cards with intrest free rates I've tried that already I have no credit rating

 

[Imgormiel]

I'm 19 people wont give me credit cards with intrest free rates I've tried that already I have no credit rating

well being that age, it's doubtful you will for some time. More debt aint good, especially if you don't know how secure your job is - given that you are 19.
I say go bankrupt and pay £400 for the priviledge and wipe the debt xD

/slap my irresponsible conduct and suggestions xD

 

[Gamah]

DONT!!!!

Trust me on this debt is fucked when it goes wrong and you will pay the price if it does go wrong.

 

[Serbitar]

I'm 19 people wont give me credit cards with intrest free rates I've tried that already I have no credit rating

is your mobile phone on a contract?

thats all you need for a credit rating. have a look at equifax.com/co.uk/haggusneedscash

buying two cars was a stupid idea, of course you always have the option of SELLING ONE which would no doubt help matters

but i would def say don't take the loan. basically it means that you owe the bank more money which means that they make more money because of the interest.

You should be able to get a CC, i had one at 18 - which admittedly was a stupid idea cos i maxed it out in around a month

 

[Imgormiel]

DONT!!!!

Trust me on this debt is fucked when it goes wrong and you will pay the price if it does go wrong.

Nah it never goes wrong, ur my door man, any one u don't like doesn't come anywhere near my door! So i don't need to worry about my debts, just that I have no friends because ur so damned good at ur job

 

[Neffneff]

DONT take more money, jsut dont, if you can get a lower interest loan to exactly pay off the present one..then do, but DO NOT take more money, give yerself 5-6 years and you will be killing yourself if you do.


i'd give anything to go back to being 19, and NOT take up the credit cards and loans i was given.

 

[Corran]

I wouldnt advise taking out more money.
If they saying they can give you a better interest rate then tell them to give you that interest rate on the exact amount of outstanding loan and not a penny more. And from there you can decide if you want to keep the same payments but have debt paid of sooner, or lower the payments and get the debt paid of at the same time.

No doubt if you ask this they will say "oh, we cant do that", because in reality by giving you more money and paying off at the same level, without a significant interest rate change (and the level needed wont happen in reality) it would mean that you are infact giving them more money in the long run as the length of payments be extended.

 

[Darksword]

dont do it, basicly you'll just owe them more money even at the same rate it will take longer to pay off so essentially you're giving the bank more of your money.

Just be tight for a while and save till you pay off your loans, how longs left on it do you know? work that out and just try and pay it off easily instead of getting into more debt

 

[Tilda]

Why dont you sell both your cars? Do you need them?
I'm practically 21 and wouldn't even consider buying a car until I know I'm in a steady job.

 

[old.Tohtori]

Then again you could take out the xtra loan, pay what they want and party your a** off.

Used to tell people "Don't take a loan unless you REALLY need it..." but now i just think f*ck it

Life's too short to be financially reasonable

 

[Calaen]

While it is probably sarcasm It is shit advice.

Life can be very tough if you go down the bad credit route. I fucked around when I was your age it took me 5 years to get it back to a level of just being able to get a bank loan at a ridiculous rate. Another 3 years of that and I am now at a position where I can get a lot of credit if needed. It is their to help you out if you need it, but as soon as you bite off to much you get screwed.

 

[Vladamir]

Get rid of your car(s) you tit

 

[Darksword]

meh i dont think you should get rid of your cars unless you want to or if you ened to, i mean do you drive both cars? you gotta think that cars have more attached to them than initial purchase price

i mean you gotta have road tax, mot, insurance, repairs and maintenance etc.

but if you really want both cars and are willing to put in the extra work to keep both then dont get rid of them.

Why didnt you just put all the money for both cars togethar adn just get one better car? dont see why you'd need 2 cars?

 

[Ezteq]

soo you need to borrow money eh?

*gets cheque book*


now then all you have to do is sign over that little thing called your soul and i'll give you the money


Muwahahahahaha


*whips hellish minions... ok guinea pigs... and rides off in firey chariot... ok old matress... in to a dark terrifying chasm thats just opened on the floor*


oh yeah did I tell you i just got a new job at debtfree direct?, company car too... ok ok guinea pig drawn matress but its transport!

 

[Case]

Your best bet at this point.. ring them up for a settlement figure tell them your going to pay off the loan with a loan from another company at a better interest rate. They will ask what your after tell them you want a better rate of interest over the existing period of your current loan for the same amount of money, 9 times out of 10 you will get it. This will mean you still pay off your loan over the same amount of time but chances are your repayments will go down which also means the total amount paid back goes down. Alteratively and by far the best option is to increase your repayments and pay off the loan earlier.

The reason they will do this for you? Telesales people are on targets and your £5k loan that they stop going to a competitor helps them hit targets ask if they can do you a deal and they probably can.

Next suggestion don`t ever get into debt it's a downward spiral, the way banks work lend you as much as possibly then screw you up so bad if you get into any financial difficulty that you can never escape from being their customer.

 

[Syri]

it's far too easy to keep on borrowing, i've made the mistake and paying for it still. don't fall into the trap. now, even if i have to get a 20 year old car if mine gives up, i still won't take on any more loans...

 

[Haggus]

Ez i'd sell my soul to you anyday !!

Ok basically I didn't explain my situation really that well. But thank you all who gave good advice I understand now.

Right, I brought two cars in the period of three months, sold one car for a little less and then payed off the loan I took out for that car. Brought the car for 3k and payed off 2k then I took out another loan, 3k, so I ow'd the back 5k + intrest. I think around 7k.

NOW there offering me another loan to pay off my excisting loan with lower monthly payments and I get more money. So basically I told em I would like to extend the loan anther 6months which I needed to do anyway because they were getting abit too much for me. Currently paying £226month but with this new loan I will be paying £196month which means extending the loan 6months but I get an extra £1700. I don't THINK I am owing the bank any more money than I already ow them.

Yeah i'm 19 I have a steady job, Training assistant manager at a pub owned but Mitchels and Butler so it's not exactly a freehouse where I could loose my job tomorrow. I only have 1 car now but I'm paying off the intrest of the loan I took out to buy it. Yeah very VERY big mistake which I regret big time but it's one of life's lessons and I wont be doing it again later on in life. Which is more important right ?

 

[old.Tohtori]

So:

Current loan: You pay 226 a month for period of time.
New loan: You pay 196 a month, for 6 months longer, and get a 1700 bonus?

I don't see any problems with that...except it sounds a hella fishy...

You could take the 1700, pay the new loan that much and you'd be 2 months AHEAD of the old loan with smaller monthly fees...which seems silly

 

[tris-]

it's far too easy to keep on borrowing, i've made the mistake and paying for it still. don't fall into the trap. now, even if i have to get a 20 year old car if mine gives up, i still won't take on any more loans...

yeh its fucking silly now. i saw an advert on tv saying they will give you credit without checking your credit history. that they dont care about anything, anyone can have it. how stupid is that, but if someone goes for it they are either really desperate or are stupid them selves.

 

[Mey]

What they are going to do is re-finance your loan, effectively giving you a new loan but paying off the old one..

 

[crispy]

Get rid of your car(s) you tit

Would be my advice also...

Exchange em for a bike or a scooter if you really need transportation

Unless you got em for bling bling and the blondes