Hi all, I need some advice.
Basically recently I've had a lot of outgoings - three of my friends are getting married and i've been invited to the weddings and the stag do's, plus I've lost a lot of weight so have needed to buy new clothes so I've had to pay out a lot of money which i wouldn't normally.
The thing is i have been sliding deeper and deeper into my overdraft, and I'm currently £1300 into my £1500 overdraft, and I only get paid £1000 a month so you can see straight away this isnt a good situation. i have now worked a monthly budget of my fixed outgoings which works out at £550 (before taking into account personal spending such as going out, clothes etc), so i know I can claw this back.
Part of these outgoings is an existing loan with HSBC which i am paying back at £150 per month which was to consolidate another loan i had, paying off my overdraft before and £800 to pay for car repairs. I contacted HSBC to see if i could get another £1300 but they stated they wanted 4 more repayments before they could look into this - by this point the weddings etc will be over.
I am thinking of applying for a loan with Ulster Bank for £1300 repayable over 2 years (repayments are £65 a month). This would get me out of my overdraft and mean that I am able to start afresh for what are going to be 3 expensive months (i'm looking at £300 next month for one stag do alone). I'm cutting out all my other spending such as going out so i know i can do it all within my £1000 income - but will applying for this second loan affect my credit rating or anything like that? What would you recommend? I'm 25 and live at home and have never defaulted on any other payments or been refused loans before. Do you think this is a good solution to my problem? I'm just frustrated that i can't get out of my overdraft at the moment (which i would look to cut down should i get the loan).