To say sod it and get more on loan

[Smellslikespringdoesntit]

We have a mortgage and car has a small loan, aside from that no overdraft or credit cards etc, we have a fair amount going out each month, like most people, so really don’t want to add to it.
Unfortunately we’ve been hit with a surprise, hefty bill for our car and will need to get a loan, which we were obviously not over the moon about. The repayment each month isn’t horrendously bad, but it’s over a few years and although we need the car, it seems like a really annoying thing to be paying off! I then thought what if we added a bit more to the amount to borrow, so it’s a tiny bit more per month, and just enjoyed the rest on a small holiday

Would you just say sod it and do this, or be sensible?

I'd say sod it and enjoy yourselves, you could get run over by a bus tomorrow!

Just so it feels like we’re borrowing money for something we actually want to/enjoy as well as something boring and annoying that’s needed

@Hoglet70 Yeah I feel a bit like that! Already going to be paying it off for something we don’t want to, eases the blow a bit to include a treat for once!

if you can get 0% card then do it. I have a credit card for a holiday as I know I can pay it off. No different to paying anything else monthly. As long as the repayments don’t put you in difficulty then do it 😊

It depends on how much “a bit more” is relative to your outgoings. I assume you don’t have any emergency fund, or you would have used that instead of getting the loan. Is the holiday something you could save up for instead?

Be sensible. If you are paying a big bill to repair a car you are still paying for, would you find it difficult to manage if you got a further big car bill or had to replace the car altogether or had some other big bill.

I am deeply risk averse though!

If you have a good credit rating and can put it on 0% do it. As a pp said, life is short. There's a line between prudence and feckless and a bit of joy once every couple of years is deeply worth it.

I wouldn’t. If you haven’t got enough in savings to cover a repair bill for a car, you don’t sound particularly financially secure or savvy. You can’t afford to pay for the car bill as it is! So you definitely can’t afford a holiday. Go on holiday when you’ve saved up.

How much do you need to borrow? What's the value and age of the car? Could you sell it as is, pay off the existing loan and start again for another car ie using Cinch?

Alot of the time borrowing more reduces your interest, I think mine is from sainsburys, as you change the amount on the calculator it tells you the interest rate.

If you don't have savings, borrowing for unnecessary expenses isn't a good idea.

The lenght of borrowing should also match how long lasts for.

Less than a year: emergencies, holidays, laptop etc

3-5 years: cars, home improvements

15-25 years: mortgage

If you can't fund a holiday with savings or a 12 month loan, you cannot afford a holiday.

Pretty much how my ex and I started on the journey towards crippling debt that destroyed our marriage and family. Obviously, if I could have my time again, I wouldn't do it.

Personally I wouldn't do this, sorry OP. I'd save up for the holiday.

I think that if you can’t afford car repairs without taking out a loan you really can’t afford a holiday. Build up a decent amount of savings first then go on holiday.

This tbh. If you’ve got a loan anyway it may as well be slightly more

You can’t afford your current outgoings - you’re having to borrow for car repairs so clearly have zero savings. You need to take a look at your budget and cut back or earn more - building up savings should be part of your monthly budget

I also wouldn't do this, I would work towards saving for a holiday instead.
What if you get another expensive repair bill in 3 months time, for your house, car, or something else unexpected?
I know its tempting but you will feel less stressed overall I think.

I couldn't enjoy the holiday knowing I'd be coming home to a bigger debt.

2 months ago I'd have said no but life changes and you only live once. It's only a little extra do it xx

I can see the temptation, but I wouldn't enjoy the holiday as much knowing that I was going to be paying for it for years.

Why not start another thread asking for holiday recommendations which fit your budget and family size and ages? What sort of holiday are you thinking of?

A 15 year mortgage? A 5 year loan for an extension? What decade are you living in?!

OP this is how people spiral into debt they can't afford. YANBU to go on holiday but future you will be cursing you if you take on more debt.

As pp said - can't you get rid of car and buy a cheaper one? Seems a bit insane otherwise. And def use 0% credit cards not loans.

Out of interest, what’s so weird about a 15 year mortgage or 5 year home extension loan?