Loan help

[Marcg868]

Right basically im after a loan for a new bike and some new gear as my helmets shagged and i need new leathers. Blah blah.

Now ive been accepted by Northern Rock for a 3500 loan, now one option is over 4 years which works out at roughly £88 a month or over 5 years at £65 pound a month. Paying back £3984 and £4129 respectivley.

Thats roughly 8.5% Apr which is pretty darn good, as my credit history is perfect, never missed payments on anything, now comes the bad bit.

Im currently only employed part time, i work as a Bar Supervisor. And my Monthly income is roughly £440- £510 a month.

And i have the following monthly outgoings

£43 Loan with Black Horse (200 left to pay)

£40 O2 Contract Mobile

£16 bike insurance, will go up to £50 for a 600 cc bike

£100 to mum in rent

The above loan amounts £88 - 68

This leaves me with £153 a month spend on petrol and going out.

Now what i really wanna know, would i be better off going with the loan over 4 years or 5 years?

As soon as i get a full time job, i will throw more money at the loan and probably pay it off end of this year or next.

Oppions please
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JACK, MISS YOU LOADS YOU LEGEND.

[yzf750r]

Personally Id go with 4 years - you can pay off your loan you have outstanding with the money from your old bike - or just by saving a bit.

As soon as your contract is up go PAYG - then you wont have that money going every month.

Or why not try and get a full time job now? Or daytime job?

Or are you a student?


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04 zx10r with mods - 187.4bhp at the wheel! :o

[Itchy]

I'd say go longer term but check them carefully for any penalties that you may incur if you pay them off early. I personally hate betting on more money in the future. But thats just me ,

say which bar do you work at ? , I'm looking for a venue which can hold 40-50 + partners (ie 100-120 )people comfortably , has room enough for maybe a band and isn't way out in the sticks.

EDIT

Aren't you going to Preston/Lancaster Uni later this year anyway? the SLC (about to be privatised) do virtually free loans ,
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Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[Marcg868]

No im not a student, just having a chill.

Well i dont work in a Bar as such Itchy, i work in a pub, couldnt be bothered working in a bar in town, it'd stress me out.

And yeah im gonna ditch the contract mobile and go to pay as you go, it runs out in September this year.
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JACK, MISS YOU LOADS YOU LEGEND.

[Keir]

i would never take a loan knowing i would only be left with £150 a month spare. Thats only £5 a day....
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Current : '08 Yamaha FZ1s
Previous: '99 Honda CBR 600FX, 03 ZX636 B1H, 99 Fazer 600 (red), 02 GSX-R 600 K2, 00 SV650s (red), 2008 ZX10R, 97 Bandit 1200N, 04 ZX6RR K1H, 04 GSX-R 1000, 98 Fazer 600 (gold), 05 Madness 110 Pit bike, 04 CR125R, 00 SV650s (black), 06 KTM 625 SMC, 99 SRAD 600 track bike, 03 SV650, 98 Bandit 1200N, Bandit 600SY, 03 GSX-R 600 K3, 01 GSX-R 600, 01 Fazer 600 (black), VFR 400 NC30 x3, 78 Honda Dream, 00 Speedfight 50

[Dragonfly]

I totally hate loans. If i have no money i dont buy it. Mots people i know that have HP on bikes and cars always defalut because of charges and missed payments. If you can keep it up good for you but you will be paying for a long time and living of that £150 spare a month for a long time to come and you will get pissed off with it and could loose your bike.

Think hard about it, its tempting i know.
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All the breast.
Muzza on Binge:
He's too busy beating the everloving shit out of Lizzie to notice this thread has taken a turn down Drama Avenue and stopped off at the popcorn shop.

[Ste]

Borrow less, leaving yourself £150 a month won't work.

Your new bike will want money spending on it for petrol, tyres, c&s, oil, brake pads, and plenty of other consumables for servicing and looking after it.

[JonB]

£40 on a mobile contract?

If you want money, sort out the things that are ridiculous.

Look for a new deal.

I'm paying £15 a month with Three for 600 texts and 75 minutes.

If I was going to spend £40 a month it wouldn't bloody be on a phone.

Wait for your other loan to finish first.

I have found an important thing with money it is important to learn to be patient and get what you want, when you can feasibly get it, I know it might be tempting to go get new kit and bike today, but realistically it could wait.

I want my £650 computer now and I could if I went further into my overdraft, but i'm gonna wait til I save up the money from work to get it. Just be patient.
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Be careful whose advice you buy, but, be patient with those who supply it. Advice is a form of nostalgia, dispensing it is a way of fishing the past from the disposal, wiping it off, painting over the ugly parts and recycling it for more than it?s worth.

[Marcg868]

Only reason i want the loan is because i want a new bike. Been on my cbr 2 years and its boring me.

I could save up but that would mean having to wait another year.

And the £150 a month thing is only gonna be for a month at the very most, sorting out a full time job. Which will up my earnings.
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JACK, MISS YOU LOADS YOU LEGEND.

[iooi]

Look at the penalties for early payment, 5 years would be best...
Pay off the other loan with 200 from the new one.. And as someone else pointed out, get rid of the £40 a month contract phone......
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Just because my bike was A DIVVY, does not mean i am......

[Marcg868]

Thats the idea ! Pay of the contract mobile and this opens up more money for me.

Applied for it, over 5 years that way i have little more money to play with. Plus i wont be stuck on a part time wage for much longer so the 640 a month figure will go up to 1100 a month.
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JACK, MISS YOU LOADS YOU LEGEND.