Loans

JimboJ · Manc Pikey Joined: 23 Aug 2002 Karma :

I have been through the search before mr hobbit points me to it and i have looked at what very little there is on loans in the FAQ

This is all assuming they accept my loan:)

After several days of convincing my mum (more like annoying her) she has warmed to the idea of me getting a loan (it will be payed off as soon as i get some money)

At 6.7% I am only paying an extra £800 on top of a £5/6000 loan

What i want to know is:

Are loans bad?

Would it be worth it or just wait for my compensation?
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TiN · Pocket Tin Joined: 14 Feb 2002 Karma :

Loans are better than credit cards...but they can be bad if you don't have solid plans for paying it back. By the sounds of it though, you seem to have things sorted.

Most loans are flexible these days, which means that you can pay back as much or little (as long as it's over the minimum payment) as you want each month, and the amount that you pay back can actually be withdrawn and used again!
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Stew · Posted: 14:44 - 07 Jul 2003 Post subject:

If you are sure that you would pay it off as soon as you get your compo money then go for it. Personally I am crap with money and would end up spending a loan plus any extra money I receive so would just end up having the debt for the entire loan period. I usually just leave all the finances to M nowadays.
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PRETTYTIEDUP · Nitrous Nuisance Joined: 27 Feb 2003 Karma :

Make sure you check the penalty's for ending the loan early.
I got mine 3 months back & i'm going to clear it at the end of the summer when I sell the bike.
My loan company want the original amount I borrowed & two months interest for me to end it.
As tin said, loans are fine as long as you can always pay the monthly repayments.

Kickstart · The Oracle Joined: 04 Feb 2002 Karma :

Hi

There are fiddles if they have penalties for early clearance. Basically you pay most of it back, and then let the final amount be cleared by a regular monthly payment

By the way 6.7% is VERY good. Better than we can get through Charlottes work with a staff discount (HSBC)

All the best

Keith
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kev · I Hump Things Joined: 07 Oct 2002 Karma :

i know its a pain but you have a bike which works of so just wait for the compo
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Crazy Manx Man · The Fly Swatter Joined: 26 Oct 2002 Karma :

err...remember your home is used as "liability" for not paying up.

I wouldn't expect your parents to pay the months you've missed on a regular occurance.
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dainesefreak · World Chat Champion Joined: 04 Apr 2003 Karma :

Have a look here https://moneycentral.moneyextra.com/compare/personalloans
Go through the quote and select "No early payoff penalty". There's a couple that come out under the 6.9% mark.

Keith @ Work · Guest

TiN · Pocket Tin Joined: 14 Feb 2002 Karma :

Lee · Trackday Trickster Joined: 02 Jul 2003 Karma :

I've just put down a deposit on a bike to be paid on finance. The finance company is black horse (lloyds bank), and the finance is not really finance but classed as a personal loan. The intrest rate is good (cant remember the exact figure, but around 8%), and the fee for paying off early is only £12 something. Also it is not secured against your house (im not a homeowner) and the payments are flexible (pay less one month, more another - need to give 1 months notice).

If you're in a steady job with good income, or have some good savings then opt out of the 'payment insurance' thing that covers against job loss and sickness. This adds quite alot to the payments, and i know somebody who had to use it once and they gave him nothing but a hard time over it, and even then they only pay the minimum they can get away with. not worth it in my opinion.

Lee

dainesefreak · World Chat Champion Joined: 04 Apr 2003 Karma :

Not sure if it still applies but some places may ask for a guarantor if you are under 21, which would probably have to be your parents. You can also usually get dealers to match the interest rates of loans with their finance deals. The only problem with Finance is that it needs settling before you can sell it.