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Personal Loan (borrowing money experience's)

Discussion in 'The Pub' at netrider.net.au started by Guest, Mar 21, 2006.

  1. Okay I am just after a some peoples experiences and or thoughts on this one.

    As many people know I am 19 and don't have ajob but when I do I am trying to earn at least 20,000 per year. When I use the calculators on the CBA or Westpac websites they say I may be able to borrow up to 8000 for 12 months. But I am planning to pay it off before then.

    Are there any young or young at heart guys or girls that have taken a loan out for their first bike ?
  2. Yeah, I have taken out a person loan, for my car, boat, etc. I found the commonwealth were really good. If you don't have a job, maybe someone could go guarantor for you?? That worked for me until I found full time work. Take it out over longer so if you get stuck with money, the repayments aren't as big, and they give you the option to pay it out whenever and don't charge you extra for it.
    Give them a go. If that doesn't work, I think you have to wait about 3 months of working until you can get one yourself.
    Good Luck!!
    P.S. What type of bike are you getting?
  3. When you're looking for a loan provider, make sure you don't get penalised if you pay off your loan earlier. I know Westpac don't penalise you, but I think CBA does.....

    Only real advice I can offer.

    :grin: :grin: :grin:
  4. Don't get into debt.

    Except for any loan that is used for investment purposes (i.e. house)
  5. consider a Credit Union, heavily consider it. This is a great one SGE Credit Union

    Heaps better than any bank, ever !
  6. i agree.....when you get into debt its gonna be a real hassle for you to meet repayments, pay interest, also service and maintenance of bike on top of that.....its gonna be a real drain. Plus if you bin it with no insurance your stuffed.

    save up and get an el-cheapo bike

    Later on you can get something nice
  7. I'll chip in with another recommendation of buying the bike buy using savings....forget the loan especially if you think you can pay it off behand then you have potential to quickly build up savings.

    Have a read of this thread
  8. Whatever you do do not go to AGC or Avco and get high cost finance - they prey on folks like you.

    Save as much as you can, at least 25% and most banks will start talking to you. They base everything on risk assessment - if you borrow 100% the risk to them is great they will recover nothing, if you borrow 70% they have some chance of recovering the debt.

    I agree entirely with everyone who says to save, start with a cheap bike and keep trading up. But i also understand what its like to be 19 and without patience :)
  9. Care to clarify this?

    If you mean you don't have a job right now, but you often get work throughout the year that totals 20k (and that its more or less gauranteed) then thats a whole heap different to " I dont have a job but if I can get one I would like to get 20k a year"

    If its the 1st one, you could go for a loan, but your better off saving.
    If it's the 2nd one, I would say you should NOT get a loan at all.

    I was always lucky to have my parents lend me the money for big things like car, stereo etc.
    The rule was, only one thing at a time. and sometimes it took ages to pay it off.
    I would hate to think what it would have been like if there was market rate interest going on that too.
  10. Firstly Thanks to everyone that has replied. I have now decided not to get a loan, becasue I had no idea about the 3 months working first :oops: :oops:
    (I thought that it would be more like 4 to 6 weeks).

    Also because of the 3 months, I decided to save up for the 3 months, use the money that I have saved to buy the bike and then borrow the money for the gear from Family members. Still with me, I think I lost myself a bit there

    Shadow200, I am hoping to get a Hornet 250 :grin:

    Bogus69, I wish I was making 20 thouand a year already :wink: . 98% of the jobs that I have been applying for are around 18 to 22,000. So I was just averaging.

    Thanks Again :)
  11. I worked on the save some, loan some principle for mine. I'm ok at saving, but better at paying a loan.

    Only recommendations I can make are shop around, and don't take a secured loan. Take your loan over a long period, so if for any reason you do get into trouble, your payments are tiny. Then when it's going good, pay off as much as you can afford, as soon as you can. I knocked over my first loan in about 8 months, and I expect to do this one in about 6 months, following the same principle.

    Watch out for maintenance fees and exit fees. You shouldn't have to pay either of these on a loan.
  12. Thats exactly how I feel too....I dont even have a credit card!
    I took out a mortgage in 1995 for $40,000...on a $90,000 house,
    I worked my butt off for 9 years...did the house up...and sold it for
    $290,000 :p :cool: (Im single no kids, so it was easy to do)
    ....gave me enough cash to buy another house pay out my existing mortgage..and pay stamp duty etc etc....with $4,000 spare I decided Id worked hard enough paying the mortgage...now was the time to spoil myself...so I went and got my L's...and a bike...all within a week!
    Ive never looked back, Im a new girl :grin:
    Got a fully paid off new house..no debt..and a bike..woo hoo...and now I only work part time...plenty of time spare for riding :p
  13. The problems with young people getting loans from major banks ect ,is.
    With no credit rating ,you can't get a loan ,with out getting a loan ,you can't get a credit rating.
    Catch 22.
    When i was young ,i got a job and then i had to go with AGC {car loan} to get a credit rating ,then after 1 year my credit union rang me and offerd me a loan to pay out the car and re finance with them.

    It might be different now ,as it seem banks are throwing money at people and there having trouble paying it back.

    One thing alot of young guys at work i talk to don't know is that ,every time you go for a loan if you get it or not ,that application is recorded on your credit file for 5 years.
    Alot of the young guys try for credit cards they get knock back try for another company get knocked back.
    They do this over the internet thinking ,pfft no biggy if i don't get it .WRONG.

    This can also go against you for future loans ,like your house in 4- 5 years time.
    Research the bank and loan conditions before you apply .
    Ring or go in to the branch ,show the loans officer your bank savings and pay slips ect ,and with out actually apply for the loan they can pretty much give you a 80% yes or no, this is what i do and keeps my credit file looking good as i don't have heaps of credit applications on my file ,for loans i wouldn't of got.
  14. pfft, 'finacial sensibility' my arse. We're talking about a bike here! Use your credit card! instant gratification!
  15. I got a loan and ive been working for this job for a month , but i did have jobs before that , i dont think you will be able to get a loan , as you dont have regular income.

    Once you do have a loan , try to get something over 7 years , seems long but it work out cheapr , around $80 a month.

    i got a 6k loan from st george , i pay 36$ a week or $144 a month. I forgot to get insurance becuase if you loose you job your screwed. So i rang up and i got mine , its extra $10 a month but worth it. If you loose your job they pay up to 6 months or $1500 depending on your loan amount.
  16. Exactly why, I am trying to find out heaps of info before hand. All I am using at the moment is the calculators on their websites. To see if I can or not. :?
  17. what is your income atm?
  18. At the moment, proberbly, $160 to 220 a month :(
  19. find a job first stay with it for a month , then go 4 loan. Sure there is heaps of jobs there , who cares how much it pays it be better then your 200 a month. you could get 200 a week then 800 a month go figure
  20. So is this three months waiting period "real" or not :? .

    I am going to ring up about 2 more jobs tommorow, so who knows :)