Idea about overdrafts.

You say you have just finished a degree, do you have any sort of interest free overdraft? I have at times thought about getting a loan to clear my cc debts but instead I am just moving the debt from card to card taking advantage of the numerous 0% offers. Always shop around around for loans, your bank may not always be the most competitive - see

to compare loans. I personally wouldn't bother with the loan protection either...

Nope. You can usually get better rates than you'll get from High Street banks, through online lenders, etc. See

for a representative selection of low-cost providers. Furthermore, if you must go to a High Street bank, don't accept the rack rate you're given. It's negotiable. Recently, I needed short-term finance, and was offered a par rate by my HS bank's manager. Two minutes later, I'd knocked three percent off it, to get a much more reasonable figure. Compound that three percent over your period of 84 months, and it makes a *lot* of difference. (And yes, mine's paid off already, BTW.)

Oh, and pick a provider that doesn't have early-repayment penalties, and (if possible) that allows you to overpay, to reduce the loan capital and thus your monthly payments.

Hmmm, this puts a slightly different complexion on it. You're going to find it hard to get substantial credit at your age, and with no employment history worth mentioning. Most personal-loan lenders are going to want an employer's name and address at the very least.

However ... I've an idea that might help. Check out

for 0% cards. Barclaycard in particular is doing a 0%-until-August-2005 deal. Credit cards are insanely easy to get. Try to get them to give you a credit limit of about 10k, then use the balance transfer facility to take the balances off your current credit card and your overdraft. That buys you a year's breathing space to get a decent employment history, and a proper loan to reschedule your debt, and you can borrow against your newly-cleared overdraft again to cover your deposit. Just remember not to use your card for anything until you've paid back a substantial amount of the debt. You haven't liberated yourself from your debt, just bought yourself some time, and making things worse won't help you.

When you do eventually take out your personal loan, don't take more than you need *right now*. You can always extend the facility, but it's dumb to be paying interest on more money that you need, particularly given compounding over seven years.

Jon

With no income? Surely not.

At this moment in time I do not have income. That should change in the next month or so. I have worked before for about 1 year, so have some kind of employment history.

I would assume that my bank would be unwilling to provide a personal loan based upon no income - however would they perhaps consider it, based upon the potential for employment in the near future?

I could get a job, then apply for it, but I will feel more secure about deposits, bills, and taxes, if, perhaps, I get the loan first.

Just to update - spoke to NatWest today and they said, they only provide personal loans for those who are employed.

Ohhhh yes indeedy. People have successfully applied for cards for their toddler children, their cats, and so on. Single parents living on benefits alone have applied for and received cards.

Andrew's a graduate. That, in the minds of lending institutions of a certain coin, means "future money machine". They want in on the ground floor, in the hope of keeping business through dumb loyalty in years to come. Student debts are not considered all that significant.

It's worth a try. Andrew has little to lose by trying, and it may well be an excellent solution to a nagging problem. If one card refuses, another might not. Just don't apply for too many, too quickly, as that starts to cloud the permanent credit record, particularly if refusals are noted. Just try two or three at most, and if that fails, try a different route.

Jon

Can't say; it's worth asking, though. Explain to them that it's rescheduling student debt into a more sensible and responsible form, and they may well bite -- but don't expect a conciliatory rate, as you'll be a lending risk.

It's weird, the way that banks take someone with debt problems, and charge them a higher rate that's more likely to push them further into jeopardy. Ho hum.

Try the 0% credit card route first, though: see my posting just now, replying to the dead President...

Jon

Given that you have just finished a degree.. I assume your in early twenties...

In a few years time you'll want to spend your income on other things... a house, a family, a car, new furniture/carpets, a new hifi, other boys toys etc etc ie don't assume that because your earning grow, you'll have more free cash... in fact is probably the other way around from experience.

First question to ask yourself is why move now? If you looking for a job, would it be better to wait until you know where you are working... houses are everywhere.. the right job is harder to find.

Assuming you get a job, your company may give relocation expenses... or perhaps an interest free loan of upto £5k.

From what I gather banks base the rate on risk, so someone without a job is a higher risk, and will get a worst deal.

I'd say if you can don't move.. try and get an interest free credit card and move the account across (read the small print tho!). Then find the right job, and maybe use the relocation expenses/interest free loan to move.

Use your income to pay off the balance on the card first, and then make sure you get into the habit saving.. I wish someone had told me that when I started work.. its far too easy to be young, free single and live for today.

Yes, speak to a graduate advisor and/or CAB.. it's always useful to get opinions and information.

Regards Mark

"Mark Blewett" wrote

OTOH, - jobs are everywhere.. the right house is harder to find.

It all depends on your point of view!

Don't borrow more than you need.

Forget loan protections.

Depends on the company.

What is the APR ? If you are a graduate you may be able to get a graduate loan, ask you bank.

I doubt you would get credit for a loan without a job. Ask your bank. Your bank is likely to help as your over draft is allready owed to them. Consider the APR though you may find that your OD and CC charge less than any loan you could get. When I left uni I had to take out a 10k loan which was charged at 6% APR which was quite good.

They would be interested as the overdraft you have with them is already money that you owe to the, It is in their interest to keep hold of your debt.

good advise.

get the job first, then move, then work out how much you can afford to pay.

Err - are you for real?! Show me a bank which will lend money to an individual that has no source of repayment by means of an unsecured personal loan and I will show you a company that lends irresponsibly!

The original poster's liability (if I recall correctly) is a student/graduate overdraft, which you will find have slightly different terms regarding repayment to a loan!

There is no way a bank will lend money to someone with no source of repayment - it would be plain stupid.

MC

"Zoe Brown" wrote

You're quite a youngster then? !

28... Why ?

They all do, in the flavour of an overdraft. If you are a student and already owe the bank a sum of money in the form of an OD they are likely to help with a loan if it is to pay off the OD. You already owe them the money and they can stick you with the interest and length of repayment.

"Zoe Brown" wrote

I thought so. It shows in your posts!

Oops 29. In any case I talk from exerience !!

I do not really understand this question of getting 10K on a card. If you apply for a card, can you these days request a limit? Would they really give you a 10K limit if you are unemployed?!