Post subject: Bit of a weird one - Bank loans. Advice appreciated :) Posted: Sep 21, 2011 - 11:03 PM
First post: Sep 30, 2008
Total posts: 2145
Location: Southampton
Status: Offline
Righto,
I plan(ned) to go to Canada in January with the Rockies Academy to do a 3 month CASI 1&2 course.
It was all going so well, i finished college, got respectable(ish) grades (A,B,C,D strangely) and started saving.
The 'agreement' (their offer to me after i approached them with the Rockies Academy booklet after a year of wanting to do it, and finally feeling it was the 'right time' - this was about a year ago when i was still in college) was that my parents would give me as much of the money as i needed, providing i helped them out and saved money myself - course is £7,000, which seeing as my parents bought a 100k flat and rented it cheaply to my sister just so she'd have somewhere to live seemed the least they could do! (This is a joke, they offered to give me the money and backed me fully - at the time )
However, due to my mother (who shall remain nameless due to my fury at her) wanting a new bathroom and wanting me to stay at home for another year, she has gone back on her promise to help me out.
My dad, like many married men is powerless to her will and is of no help at all.
So yeah, there it is, my predicament. I have a place booked on the course (which can carry to next year if i ask), i have (almost) all my gear sorted for going out there, and - possibly worst of all - all my friends and family know im supposed to be going and if i was still here in january id die of shame
Do i delay it a year, get a full time/part time job, save up plenty of money, pass my driving test (im 18 in december and i havent even bothered to start learning after almost a year!), and be more physically/mentally mature, OR do i try and get a bank loan to pay for it, and give me a bit of spending money...
I know you have to be 18 to take out a loan, and there is literally 1 month between me turning 18 and the departure day of the course - but ill cross that bridge when i come to it.
One loan in particular that caught my eye was this one:
Borrow £10,000, pay back £194 a month for 60 months (5 years) - but you dont start paying it back for the first 3 months. Therefore i can still save money from now till christmas and have it ready for the £194-per-month direct debit/standing order.
With £10k, ill be able to pay for the course, (finally) get a MBP (id get a £2k one on ebay for £1200ish), buy the course insurance and have money left over. Or i could get a £7,500 loan and have less to pay back per month, which is an option and i can buy the MBP with general savings (or just wait).
The question is, is £194 a month manageable? I literally have no idea about bill-costs and stuff, and im not going to ask my parents for advice as i feel i can no longer trust them with anything.
Oh, and to save me asking later, do you think id be better to wait 15 months till next January where id be a bit older, have more than enough money, be driving, etc, etc? (yes, its the logical answer, but in my youthful naivaty i want to go this year and suffer the consequences later )
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Last edited by J_Smith on Sep 22, 2011 - 12:01 AM; edited 1 time in total
cwj
Post subject: RE: Bit of a weird one - Bank loans. Advice appreciated :) Posted: Sep 21, 2011 - 11:39 PM
First post: Nov 13, 2010
Total posts: 364
Location: Glasgow-ish
Status: Offline
If you know without a shadow of a doubt you can land a job when you get back and your parents will let you live with them paying minimal digs for 5 years, you can maybe consider it. £194 is a weeks wages at minimum wage working 9-5 5 days a week after tax, so that's a quarter of your earnings which could be half your rent in 2 years time. I don't know what your parents expect you to do though and at 18 with no credit history so to speak I doubt anyone will give you 10k.
Maybe if your parents see you are responsible enough to wait a year they will help you out, but I don't know how to deal with parents that are like that.
col.g
Post subject: RE: Bit of a weird one - Bank loans. Advice appreciated :) Posted: Sep 21, 2011 - 11:41 PM
First post: Aug 27, 2007
Total posts: 118
Location: Barnsley
Status: Offline
I'd put it off for a year. Even though you turn 18 it does not guarantee that you will get £7000 £10000 unsecured as a loan on your first go at getting credit, maybe a few years ago when you could get silly money but not nowadays. Also you would be cutting it very fine in that timescale. You could always pester your mum to give you the money she may give in.
Also don't be in a rush to get a car yeah its nice but it costs a fortune, driving lessons, taking your test, buying the car £3000 for your first years insurance, up keep petrol....the list goes on and on.
£194 a month isn't too bad on a £10000 loan the total you'd pay back would be £11640, but remember its £50 a week but minimum wage for someone your age £4.92 an hour so you would have to do atleast 10 hrs a week just to cover your loan and as most part time jobs are 15-16 hrs a week you'd probably spend whats left on traveling to work. So in my opinion I'd
a: pester your mum for the money
b: leave it a year don't get into debt save up your money (you can always guilt trip your mum for the year at family do's "remember when my sister got a 100k flat and I didn't get anything not even my trip you promised" etc)
c: Kill your parents steal thier identities and remorgage the flat and go on the run. Probably a bit extreme but if you really want to go.......
hope this helps
DereksDontRun
Post subject: RE: Bit of a weird one - Bank loans. Advice appreciated :) Posted: Sep 21, 2011 - 11:44 PM
First post: Mar 09, 2009
Total posts: 1723
Location: The port of Stock
Status: Offline
without wanting to sound like a tit but it's worth re-thinking the 1st section you've typed as it sounds like a spoilt brat "expecting" cash from mummy and daddy instead of earning it. Yeah, it might just be jealousy on my behalf having to earn it, but do you honestly expect sympathy?
anyway... to topic...
sounds boring but wait... if you've got no idea whether £194 a month is manageable then chances are you can't afford it... You know if you've got at least £200 a month kicking about "spare" in the bank each month and thus you can "use" it to pay back a loan. Look at how much you've been able to save each month for the last say 6 months - can you honestly say you can live without £200 each (and EVERY) month (can't just pick and choose which months you're able to pay the cash back)? Plus, 5 years is a LONG time when you're 18, you'll be tied into this loan when you're wanting to save to go away next year, the year after that and the year after that, etc....
I have to question whether your maths is really right tho... £7k for a CASI course - are you sure you've not missed a load here and there (and/or not taken into consideration your weekly spends)? When I did the maths for a 12week BASI2 course at Bankso (so arguable MUCH cheaper) it was looking like 6k for that... Thus I'd expect it to be at least 10k for 3 months in Canada.... Course + fees (most CASI courses only had CASI 1 included, have to pay for CASI 2) + insurance + spends + flights. Not to mention all the "usual" monthly expenses like monthly bills, phone contract, mortgage/rent, etc.
rule for loans is like gambling - only bet as much as you can afford to lose... only take out a loan that you KNOW you can afford to pay back...
Post subject: RE: Bit of a weird one - Bank loans. Advice appreciated :) Posted: Sep 21, 2011 - 11:47 PM
First post: Sep 30, 2008
Total posts: 2145
Location: Southampton
Status: Offline
Hmm, the whole 'credit history' is a bit of a worry i admit - despite the fact im convinced ill be turned down, i might suggest borrowing the money i need from my dads business at a similar rate - that way ill only have him to answer to
I just dont know what to do, all my thoughts & feelings are jumbled up - which is a horrible feeling.
I guess ill just have to endure another year with them - which does have a lot of plus points i guess.
Perhaps its time to start looking at other-resort jobs so i can at least head out for a bit of the season this year :/
God i hate feeling like this, but i need to get on with it - at least my friends are still around - they'll be around for at least another year as most of them have no life plans.
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J_Smith
Post subject: Re: RE: Bit of a weird one - Bank loans. Advice appreciated Posted: Sep 21, 2011 - 11:56 PM
First post: Sep 30, 2008
Total posts: 2145
Location: Southampton
Status: Offline
DereksDontRun wrote:
without wanting to sound like a tit but it's worth re-thinking the 1st section you've typed as it sounds like a spoilt brat "expecting" cash from mummy and daddy instead of earning it. Yeah, it might just be jealousy on my behalf having to earn it, but do you honestly expect sympathy?
Not at all, we've been talking about it for ages and they offered to help me out, i was just happy they didnt tell me to 'stop being silly and work for a bank'. Im not a spoilt brat at all, i just didnt want to bore you all with the details of their offer.
anyway... to topic...
DereksDontRun wrote:
I have to question whether your maths is really right tho... £7k for a CASI course - are you sure you've not missed a load here and there (and/or not taken into consideration your weekly spends)? When I did the maths for a 12week BASI2 course at Bankso (so arguable MUCH cheaper) it was looking like 6k for that... Thus I'd expect it to be at least 10k for 3 months in Canada.... Course + fees (most CASI courses only had CASI 1 included, have to pay for CASI 2) + insurance + spends + flights. Not to mention all the "usual" monthly expenses like monthly bills, phone contract, mortgage/rent, etc.
Its through the Canadian Rockies Academy. £7000, 3 month course, flights, food, accommodation and ofcourse tuition included. Only have to pay $600 Canadian dollar exam fee & pay for insurance. Fun fun
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J_Smith
Post subject: Re: RE: Bit of a weird one - Bank loans. Advice appreciated Posted: Sep 22, 2011 - 12:05 AM
First post: Sep 30, 2008
Total posts: 2145
Location: Southampton
Status: Offline
col.g wrote:
I'd put it off for a year. Even though you turn 18 it does not guarantee that you will get £7000 £10000 unsecured as a loan on your first go at getting credit, maybe a few years ago when you could get silly money but not nowadays. Also you would be cutting it very fine in that timescale. You could always pester your mum to give you the money she may give in.
Also don't be in a rush to get a car yeah its nice but it costs a fortune, driving lessons, taking your test, buying the car £3000 for your first years insurance, up keep petrol....the list goes on and on.
£194 a month isn't too bad on a £10000 loan the total you'd pay back would be £11640, but remember its £50 a week but minimum wage for someone your age £4.92 an hour so you would have to do atleast 10 hrs a week just to cover your loan and as most part time jobs are 15-16 hrs a week you'd probably spend whats left on traveling to work. So in my opinion I'd
a: pester your mum for the money
b: leave it a year don't get into debt save up your money (you can always guilt trip your mum for the year at family do's "remember when my sister got a 100k flat and I didn't get anything not even my trip you promised" etc)
c: Kill your parents steal thier identities and remorgage the flat and go on the run. Probably a bit extreme but if you really want to go.......
hope this helps
Cheers man, its given me a lot to think about
But C probably is a bit extreme haha
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ciaren
Post subject: RE: Re: RE: Bit of a weird one - Bank loans. Advice apprecia Posted: Sep 22, 2011 - 12:16 AM
First post: Jul 26, 2011
Total posts: 53
Location: swindon
Status: Offline
someone has said it, but the chances of you getting a loan are zero to none. at the current climate, its hard enough, let alone not having a job. if you have no means of paying it back, i.e. no job then you wont get accepted, no one in there right mind would give someone 10k when they've got no way of paying it back.
try having a "family" meeting with your mum and dad and tell them how heart broken you are and other stuff that will make them feel bad so they might reconsider.
other than that your gonna have to wait a year and get a job. try some temping, might be easier to get one.
J_Smith
Post subject: Re: RE: Re: RE: Bit of a weird one - Bank loans. Advice appr Posted: Sep 22, 2011 - 12:24 AM
First post: Sep 30, 2008
Total posts: 2145
Location: Southampton
Status: Offline
ciaren wrote:
someone has said it, but the chances of you getting a loan are zero to none. at the current climate, its hard enough, let alone not having a job. if you have no means of paying it back, i.e. no job then you wont get accepted, no one in there right mind would give someone 10k when they've got no way of paying it back.
try having a "family" meeting with your mum and dad and tell them how heart broken you are and other stuff that will make them feel bad so they might reconsider.
other than that your gonna have to wait a year and get a job. try some temping, might be easier to get one.
I think you're right - other than the 'family meeting', my mothers 'god-complex' would ensure she HAD to control everything, so im going to distance myself and if im asked what i plan to do, im going to laugh and say 'you really think id tell you? im not having you try and take control and mess things up for me again. You've got to be joking...'
I think ill put my time and energy into looking for resort-work this season, and perhaps cruise-ship work this summer. My cousin did Camp America last year (rock climbing he did) and he keeps telling me to look into it, so perhaps i will.
One door closes (temporarily), a whole series of others open...
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liggins
Post subject:Posted: Sep 22, 2011 - 07:25 AM
First post: Jan 16, 2010
Total posts: 764
Location: Sunny Sunny South East
Status: Offline
Quote:
Borrow £10,000, pay back £194 a month for 60 months (5 years) - but you dont start paying it back for the first 3 months. Therefore i can still save money from now till christmas and have it ready for the £194-per-month direct debit/standing order
Firstly, as many others have said you wont be able to get a 10k loan with limited credit history and no job..
Secondly, If you did some how manage to blag getting the loan it certainly wouldn't be at the representative apr rate of 6.30%
You'd probably be offered something like 20% minimum (but you wont because you have no job or credit history)
Quote:
Sainsburys Finance reserves the right to vary rates without notice. The rate you are offered will depend on your personal circumstances, credit assessment procedures and other related factors
Thirdly, Are you aware that when they offer a payment holiday of 3 months you are still paying interest on those months?
cantridepete
Post subject:Posted: Sep 22, 2011 - 08:06 AM
First post: Oct 28, 2008
Total posts: 2328
Location: Haute Savoie
Status: Offline
you'd be mental to take a loan for 5yrs to go on what is esentially an extended holiday. Even if you got the loan, you'd probably not be able to go riding for the next 5 yrs as you'd be paying it back!
just do a regular ski season, get a job with a TO like everyone else. You'll still get plenty of riding and you'll be able to pay your way as you go.
Job done
ace_mcgraw
Post subject:Posted: Sep 22, 2011 - 08:44 AM
First post: Feb 20, 2007
Total posts: 4912
Location: That snowboarding hotbed, Norfolk
Status: Offline
As everyone else says, I'd think long and hard about taking lots of credit out. I was a student and got a relatively well paid job after that meaning that I got a £2k overdraft off the bat with my bank as a student, then a credit card for emergencies which became more and more used, and I think they ended up extending my credit limit to well over £10k on my credit card! That sounds great, but thankfully I never got anywhere near my limit, but I still had to end up with consolidation loans to reduce payments and interest which again is great, but is so annoying now because I'm on a decent wage but still paying half my salary to paying off the debt! I could be living like a king if I hadn't gotten into my overdraft and debt so soon after uni! I was only able to get decent rates on the debt consolidation loans cos I'd been in my overdraft and using credit cards for so long and always made the payments, so I had a good credit score.
On the plus side I guess, because I have had lots of credit in the past now that my wife and I are planning on getting a house, I have a great credit score, and could borrow a lot of money for a house. But for the worry its caused me over the years my recommendation is that its best avoided.
Don't be afraid to put these things off - if its really what you wanna do, you will find a way of doing it soon. I was 25/26 when I did my season so its perfectly possible to do it when older!
First post: Nov 04, 2010
Total posts: 978
Location: Hove
Status: Offline
Do not get a loan to fund this.
You won't get 6.3% for a start. Representative is based on your circumstances. Save for it and then pay for it. I agree with pretty much everything that has been said here. 5 years is a very long time to be paying off a loan for. The interest over that period is going to be huge. You'll be paying closer to £250 a month too.
First post: Oct 15, 2009
Total posts: 4046
Location: Luton, UK
Status: Offline
1. At the age of 17, even if you could get a loan for 7-10k that would be mental. You do not want to be getting into debt at your age. It's a slippery slope if you're not careful.
2. As it's been said already, your chances are slim to none on getting a loan anyways without any credit rating, no job and being your age.
3. Get a job and start saving and maybe go in a year or two. What's the big rush? At the end of the day, whatever your parents have "promised" you, it's their money and their life so quite frankly I don't think you should ever expect them to give you a whacking great big sum of money such as that. Are it's been said earlier, it does make you sound real spoilt. If you wanna go do something immensely like this get a job and earn it yourself. Sorry I know that sounds harsh. Perhaps it's jealousy but I've done a lot of fun things in my life and I've always funded it myself.
4. Personally I reckon would make more sense to wait until you are a couple of years older, not only coz you'll be more mature but also having a driving licence is always a good thing plus. it's worth considering that the drinking age in Canada is 19...
_________________ "and fatigues soon ignored, as your feet hit the board, or the beat hits the floor, these are the moments that we live for"
mini.
Post subject:Posted: Sep 22, 2011 - 09:11 AM
First post: Jun 16, 2008
Total posts: 1681
Location: a world of my own, but mostly sheffield.
Status: Offline
i am going to he a little bit more harsh than the others have been so far by simply saying
Welcome to adult life.
there's times in all our lives when we desperately want something but cant afford it. the harsh reality is we have to do without.
a year ago when you approached your parents you where 16, in their eyes probably still a child and they will over the years have heard you ask for a lot of things that (again in their eyes) you grew out of wanting. and the old "yes son you will grow up to be a fireman" thing could still have been in their minds.
my old Nana once told me you know your an adult when you stop expecting things to be "fair"
as others have said there is plenty of time to go do this, and you will feel way more satisfaction if you do it debt free.
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