HIGH APR

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mortuary
mortuary Posts: 2 Newbie
in Loans
HAS ANYONE GOT ANY ADVICE I CURRENTLY HAVE A HOUSEHOLD BANK FLEXIBLE LOAN, WHICH IS PAID ON A MONTHLY DD APR IS 23.9%. MY PREVIOUS BALANCE WAS £1104 I PAID £32.00,WHICH INCLUDED £8.63 PAYMENT PROTECTION AND £20.12 INTEREST. MY CURRENT BALANCE IS £1101 WHICH MEANS I AM ONLY PAYING £3.00 A MONTH OFF THE LOAN, WE HAVE A GOOD CREDIT RATING.

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  • deemy2004
    deemy2004 Posts: 6,201 Forumite
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    If its a flexible loan, then that should mean you can pay it all off without incurring additional interest i.e. the rule of 78 ? or whatever its called.


    Anyway, 23.9% is an EXTREME rate of interest, why not look at the many deals available which range from 6% upwards.

    Now the protection insurance is basically a waste of money !

    If your worried about redundancy then why not see salaryprotect.co.uk for a few £'s a month you can secure an higher income for 12 months unemployment.
  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
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    I have had a quick look at your figures.
    At first sight they are "in line with" the stated APR.
    There is insufficient information for me to say anything more than "in line with" at present. Knowing the APR does not enable one to work out what the interest should be.
    You might or might not want to tell us a lot more about the loan and I am not asking you to.

    I wonder though what amount did you borrow?
    For how long did you borrow it?
    When did you borrow it.
    Are you allowed to make early repayment without penalty?  
    The insurance protection payments appear to be high.  
    I have not come across a worse scenario than this for a while.
    If your situation was made known to a newspaper something might happen which was to your advantage but then again overall it might not be to your advantage.
    Did you borrow the money from a well known source?
    ...............................I have put my clock back....... Kcolc ym
  • mortuary
    mortuary Posts: 2 Newbie
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    The loan is with Household Bank and it was for a TV and a COOKER which we bought from currys a year ago.
    There is no finishing time it just carries on until you eventually pay it of, buy that time we will both be old age pensioners.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    First Post First Anniversary Combo Breaker
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    As deemy says, if it's flexible you should get another loan (if you don't have the money) or better, a 0% credit card from Egg who will then pay off the loan for you. And then make sure that you keep up your monthly payments (preferably by DD) and arrange another 0% card to follow on from the expiry of this one. Shouldn't take forever to pay it off, then.

    Payment protection is ALWAYS bad value if bought from a lender. You can buy standalone cover online far cheaper or just do without it.
  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
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    There is no finishing time it just carries on until you eventually pay it of, buy that time we will both be old age pensioners.
    That is just what I thought.
    ...............................I have put my clock back....... Kcolc ym
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