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##~loan Repayment~##
crisp02
Posts: 19 Forumite
in Credit cards
3 years ago i took a loan out from Halifax bank of £3000 over 5 years at £75 per month intrest payment,i now find out the loan debt as reduced to £1,270 over time but i am still paying £75 pounds a month for such little debt.If i used a credit card to pay this off, would the interest be cheaper, i am a complete dummy when it comes to credit cards, and i have never used one.could i juggle the credit cards.can someone on here give me advice on the best way to reduce the debt, there must be a cheaper alternative.Many thanks
0
Comments
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you need to find out
-what is the APR of your loan
-when you say you are paying 75 interest do you actually mean you are paying 75 monthly payment?
-is the loan flexible i.e. does it allow overpayments
-did you take out PPI on the loan?
-what credit cards do you have and what is their APR
-is you credit rating good?
-how much can you afford to pay back each month?EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Thanks for you're replythe loan payment is £75 pounds a month, but my online acount indicates the loan is down to £1250, originally it was for £3000 so i am paying the same amount now as i was in the beginning, i will ring them for a settlement figure, i know i was penalised in the first few years if i payed of the capital, but thats changed.I am sure a credit card could pay this off for less payments.0
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Claptonjust found my loan agreement, 16.9% apr on £3000 total loan, to be repaid £4,468 over 60 months, its been 3 years and 7 months since i had the loan.0
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I'm not sure what exactly you were expecting...
loans always work by paying the same monthly payment over the period of the loan...
the amount of interest paid being paid each month decreases with time and the amount of capital being repaid each month increases with time, but the total monthly payment doesn't change.
anyway you haven't answered my other questionsEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Crisp, you are paying £75 a month for the duration of the loan, which is 5 years (60 months). The £75 a month includes the interest.
You say there is 17 months left to run on the loan.
17 x £75 = £1275. The balance is now £1250, so it looks like your final payment (month 60) will be for £50.
Just because you owe less on the loan now, doesn't mean that your payments should be less.Tank fly boss walk jam nitty gritty...0 -
Thanks for the great repliesIf i get a settlement figure, would it be easier to pay the balance off and reduce monthly payments on a credit card, thats all i am asking, i understand the quandry im in over the next 17 months i will be paying the same £75, there must be a better way.0
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you say are are paying 16.9% APR on the loan..
it is only worth refinancing onto a CC if the CC charges less than 16.9% APR and also you have the difficulty of actually getting the cash from the CC to pay off the loan (you normally can't use a CC directly to pay off the loan)EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Clapton i am 3 years and 7 months into this loan,what i am thinking is if i get a settlement figure and its £1.270, it would be worth taking another loan out and pay the same amount every month on a better deal, i dont mind extending into another loan as long as its similar, i need some finance for a car, so its all about shopping around for another loan.what do you think0
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Ok what about paying the debt off when i get a settlement figure, with my HSBC overdraft facility, which is £1.500, will the debt be less.0
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The settlement figure is £1285.0
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