I'm thinking of taking out a bank loan

I'm a mature student (22) and applying to uni this year. I do not have a job. I'm thinking of taking out a bank loan of £1000 to pay some debt. Is this a good idea? Is it unlikely for me to be accepted? Will it affect student finance in any way?

Thanks

Reply 1

Surnia

20

How are you going to repay a loan when you have no income source to do so? You are just building up more debt.

What's the situation with job hunting; you are several years out of school?

Reply 2

Anonymous #1

OP

Original post by Surnia

How are you going to repay a loan when you have no income source to do so? You are just building up more debt.

What's the situation with job hunting; you are several years out of school?

Family will help with repaying the debt until I find a job (I wouldn't be expected to repay my family, but I will).

Reply 3

Joinedup

20

It might be possible to persuade creditors to stop charging you interest on the debt and allow you to pay the amount owed down in smaller monthly amounts... that's particularly good for credit card debt because of the high interest rate CC's apply.

I'd suggest you get advice from citizens advice https://www.citizensadvice.org.uk/

Reply 4

Surnia

20

Original post by Anonymous

Family will help with repaying the debt until I find a job (I wouldn't be expected to repay my family, but I will).

That's 3-4 years of servicing your debt until you get a job, so have you done a financial review, made any cutbacks?

If £1000 will only cover 'some' debt what about the rest? Is interest accumulating? Have you worked out what to pay off first?

Reply 5

Anonymous #1

OP

Original post by Surnia

That's 3-4 years of servicing your debt until you get a job, so have you done a financial review, made any cutbacks?

If £1000 will only cover 'some' debt what about the rest? Is interest accumulating? Have you worked out what to pay off first?

Sorry I didn't make it clear in my initial post. I'm not in any serious debt, apart from the 1k, which can be paid back to the bank in a year with a part-time job.

Reply 6

Surnia

20

Original post by Anonymous

Family will help with repaying the debt until I find a job (I wouldn't be expected to repay my family, but I will).

So why not get the family to give you the money to pay off the debt directly? Why do you think you'll get a loan with no means to repay it?

Reply 7

StriderHort

21

Original post by Surnia

So why not get the family to give you the money to pay off the debt directly? Why do you think you'll get a loan with no means to repay it?

This, if family is an option use it. You simply won't get a bank loan as you have no official way to pay them back, I don't they're even allowed to lend to you.

Reply 8

Anonymous #1

OP

Original post by Surnia

So why not get the family to give you the money to pay off the debt directly? Why do you think you'll get a loan with no means to repay it?

Original post by StriderHort

This, if family is an option use it. You simply won't get a bank loan as you have no official way to pay them back, I don't they're even allowed to lend to you.

The issue is, the £1k needs to be paid in one go, I won't be able to get £1k from family in one go. So the idea was, I would borrow around £100 a month from family to pay back the loan, get a job, pay back the remainder of the loan myself, then finally pay back family. But if that doesn't sit well with the bank then that's that.

Reply 9

Hisksjd

15

Original post by Anonymous

I'm a mature student (22) and applying to uni this year. I do not have a job. I'm thinking of taking out a bank loan of £1000 to pay some debt. Is this a good idea? Is it unlikely for me to be accepted? Will it affect student finance in any way?

Thanks

Just get a student account. Most of them have a £1000-2000 overdraft