Borrowing money

[Robotstar5]

I wonder how he paid the builder?

Unfortunately, due to way our shift patterns work I won't see him for 6 weeks to ask the question

 

[Burdekin]

Re-mortgage?

 

[addjunkie]

Drawing cash on a credit card, will have an upfront fharge for a cash withdrawal.

Remortgage, then heavily overpay, to reduce your extra 20k balance. Though mortgage set up charges might scupper this.

 

[Luke]

Some credit card balance transfer deals only allow the balance to be transferred from another credit card.

Others will allow you to transfer the money to a bank account.

Check what the transfer fee is. This is a one-off percentage fee that can be less than or more than the equivalent interest you would pay.

I've used credit card deals a number of times. The trick is to not use the card for anything else, ensure the minimum payments (at least) are paid every month and that the balance will be cleared before the deal runs out. They're just waiting for you to trip up, to make their money, but it's not hard to play by the rules.

 

[8ob]

Whats wrong with an overdraft ? I have given my bank manager a few heart attacks over the years but they are very flexible.

Bob

 

[TechnicAl]

I dont think I could get a loan now, being without visible income.....so when I want something I save up but try not to use my existing savings.......and quite often half way there I realise I didnt need it in the first place

Ive almost bought a chop saw quite a few times......I renovated a few old pieces of furniture to buy my new Bosch Blue Sliding Mitre Saw (very nice)

 

[garethp]

I've thought for a while about loading up an interest free card in a short period of time to buy every day stuff, setting aside the money that would have normally come from my bank to overpay a lump off the mortgage, then pay back the credit card making sure its all paid off before the interest free period runs out.

This way I would borrow at 0% and use the money to overpay a mortgage at 2.34% which is my current rate.

Just been googling the idea and found its a common thing and called 'stoozing' and i think its what Luke mentions above

 

[Hitch]

Quite often a percentage fee applies if you transfer funds to an account from a credit card, yeah, interest free sounds good, but you pay the 3% of the transfer value. Quite often the same with flipping between cards, you might get a year interest free on a balance transfer, but you need to pay the 3%(for instance) each time. That fee varies between deals, but never seen one where the card company doesn't make money!
And be aware, miss a payment, and you'll be up to full purchase rate for the rest of the term.
I'd be speaking to my bank for that kind of money personally.

 

[DAPPH]

Now We've knocked the mortgage on the head ( 6 yrs ago ) & have no outstanding debts or loans etc. we've been able to look at our finances with a totally different set of eyes & minds . I'm also doubly disabled, divorced & remarried 30 yrs ago, so have borne a lot of financial burdens one way or another . Long before you go to the lending institutions ask questions, lots of them . Questions are the answers . Ask enough sensible ones and you'll find all the answers.

Borrowing from family members with a legal written contract is a good way to go if your family are so disposed & able to be helping each other out, often lending at the same lowest rates ( or less ) around .
A written contract is so that if anything untoward happens to either you or the lender the state cannot come back & say, " Hey you , you have too much money or you have squandered your money so you don't qualify for help ".

Sometimes elderly relatives are only too pleased to advance family members money saved up for sensible projects before they die as it keeps it out of the hands of solicitors & the tax man.


£20 K is a fair slack handful of dosh to borrow , will your insurances look after it if you get injured & can't work for a short or a long period or if you die before it is fully repaid ?

Is what you're hoping to buy going to cost you even more money during it's expected life time , if so is there a likely chance of the item becoming totally un useable during the expected life of it ?
Should the worse happen can the item be sold to cover what you've laid out on it ?

 

[Keith 66]

I have never like borrowing money. Parents bought me up that way & im grateful for that. As a mostly nearly skint boatbuilder with an erratic income the repayments always scared me. I had a loan back in the early 80's over 18 months to buy an engine for a yacht i was building, ever since i either built it myself, saved up & bought it or did without. Mortgage was in my wifes name & paid by her as she earnt more. With the current low interest rates sure borrowing money is cheap but with the world as it is i suspect the next big banking crash is not far off, one day the interest rates will jump high again. Its just the way it is. Those with no loans will be in a better position!

 

[Matrixx]

Quite often a percentage fee applies if you transfer funds to an account from a credit card, yeah, interest free sounds good, but you pay the 3% of the transfer value. Quite often the same with flipping between cards, you might get a year interest free on a balance transfer, but you need to pay the 3%(for instance) each time. That fee varies between deals, but never seen one where the card company doesn't make money!
And be aware, miss a payment, and you'll be up to full purchase rate for the rest of the term.
I'd be speaking to my bank for that kind of money personally.

Currently on a 36 month interest free deal.

https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

^^ 27 months no fee.....

with the interest rates low some banks are charging you to keep your money.

 

[rtbcomp]

...
Sometimes elderly relatives are only too pleased to advance family members money saved up for sensible projects before they die as it keeps it out of the hands of solicitors & the tax man.

...

If it's a gift it's part of the lender's estate for 7 years after making the gift. If it's a loan the outstanding balance is part of the estate. It may be possible to make it a condition of a loan that if the lender dies before the loan is paid off the loan is cancelled

 

[addjunkie]

If it's a gift it's part of the lender's estate for 7 years after making the gift. If it's a loan the outstanding balance is part of the estate. It may be possible to make it a condition of a loan that if the lender dies before the loan is paid off the loan is cancelled

This reminds me of the Death Book, but I shall start a new thread.