Would you get a loan for this?

[Moanaorviana]

It would be 5 grand, €90 per month over 7 years

The money would be to do up the garden-fences, grass etc, plus some on the kitchen. We would also use a little over July & August as I start a new job in September and need a stop gap. The rest would be on a treat holiday to Disney Paris (we’ve had a traumatic year) and a little on Dds birthday
The money spent on the gardens would make a huge difference if we ever wanted to sell, plus tne little bits in the kitchen

Would you do this?

No

Is it enough for all that? I would but I don't mind debt

No I bloody wouldn’t. You’re paying 7560 back on a 5000 loan.

No. None of those items is essential and you would be paying an awful lot in interest

Do you have a/2 secure income/s? Do you have any buffer or savings for unexpected expenses? Would the changes actually increase house value? I'm tempted to say I wouldn't, or would wait until could save to do it

How much interest would you be paying and how much leeway to borrow or use savings on an emergency? The problem with borrowing for nice to haves is it limits your credit for things you really need and repayments can quickly spiral out of control if you have a few loans. I've used interest free credit cards to spread the cost of holidays and keep my savings intact for emergencies so not entirely against the idea but it has to be seen in the context of your full financial situation

No. You’re already indicating it’s not an essential debt but spending. With young kids you don’t know what will be needed on critical things in the next 7 years

If the loan is for a necessary home improvement only, then yes, but if the fencing is just tired and not causing unsafe boundaries I'd save up for it. Sorry you've had a tough year, OP, but the stress of debt won't help.

No. Especially not for a holiday.

7 years would be too long for me. Sounds like the money would be spent in a matter of weeks, then 7 years of making payments. Plus if you're so short of cash that you need to pay it back over that length of time, then it really isn't worth it. Other expenses will come up in that time and how will you cover those?

If you do have more cash available then possibly I'd do it but over no more than 2-3 years max for paying it back.

Sorry. I probably could have don't the calculation. In this case, no. I only ever use interest free borrowing for non essentials. Save up and don't give the lenders a penny you don't have to!

No. It's not to fix necessities. To go into debt for 7 years for frivolous wants, poor financial management.

What if you have a real emergency?

I'd try to only borrow for the garden refurb. Do without the holiday until you can take advantage of the likes of Jet2 monthly payments. Work out the bare minimum needed for July/August, was claiming benefits out of the question?

So you're paying an extra £2500 for something that is a want and not a need?

Try putting the £90 a month into a high interest savings account (Natwest have one that pays about 6%) then you could afford to pay outright in a few years.

No, I wouldn’t.
mortgage, car finance, interest free credit card all okay. Otherwise I’m very debt adverse, no way I’d borrow for a holiday the 7 yrs of paying it back would be far too much for my peace of mind!

What sort of emergency savings have you got if you were to lose a job/car break down so you can't get to work etc.

Probably better to save 90E a month on the emergency fund.

Definitely not. You’re planning on getting a lot with the 5K which makes me think the fences are being done really cheaply and likely to need redoing/replacing before you’ve even finished paying for them.
Holidays are not something I would accrue debt for personally (not saying that in a smug tone, apologies if it sounds like that, hard to convey tone!), if we can’t afford a holiday we don’t have one. And I’m sorry you’ve had a difficult year, I know after such times you feel your family would really benefit from a break and maybe you’re right to spend it like this.
But I wouldn’t be getting a loan for the things you’ve listed.

No, I wouldn’t. I’d save and do the work as you go. I’m guessing you’re quite hard up given it’s going towards birthdays and summer holidays. In which case I’d leave the garden and kitchen and focus on necessities.

No, you'll be paying back £7560 on a £5000 loan!

Also, 7 years is a long time to commit to a loan: what happens if one of you comes ill or loses their job?
If you put away £100 a month, you'll have saved £5000 in just over 4 years. That will save you £2560 in interest and you won't be making a financial commitment you might later regret.

None of that is essential. If you spend like this you will struggle financially your entire life. Save up to cover the Impending cash flow issue, then save a buffer for emergencies, then start saving for things like home improvements and holidays.

No. What happens if your new job doesn't work out?

This is the kind of make-myself-feel-better decision I’ve made when feeling stressed, run down and in need of a pick me up, but it’s always a bad decision and I always regret spending the money!

Don't do it - save up for these purchases bit by bit, make it a game to see your savings account increase and you’ll have so much more satisfaction in the long run.

yes for the holiday but there might be a cheaper way to borrow? I doubt you could do all of that for 5k

We have a low mortgage and only €100 K owing on our house, which could sell for €400 k in the future, we have zero credit cards or overdraft and one low car payment
It will make a huge difference both the back & front garden as it needs returfing/artificial grass (live abroad & no choice in this as the heat has dried out people’s gardens. The little bit to the kitchen will make a big difference too

I used to design gardens for a living and it’s rare a new garden adds much to the uplift in price for a sale especially given such low figures. Sorry