I want to be debt free...

peekingduck101
peekingduck101 Posts: 2 Newbie
in Debt-free wannabe
Hi all,

I want to figure out a way of paying off my debts without getting absolutely exploited with the interest I am currently paying.

Here is my situation:

1. Natwest Credit Card - £1,500 - paying minimum monthly payments (£36).

2. Natwest Graduate Loan - £14,000 - paying £337 each month with £197 being interest!

Is there any way in which I can reduce the interest on the loan? It's ridiculously high...

Also, I am not working now and have a small lump sum of money which I was informed I could potentially offer Natwest for example £600 to pay off my credit card and they would potentially take it, is this correct?

Sorry, I am not very knowledgeable with things like this, thus why I am seeking your advice.

Thank you so much!

Comments

  • moohound
    moohound Posts: 1,209 Forumite
    Debt-free and Proud!
    Typically reduced full and final payments are only accepted if the debt has defaulted, and perhaps been passed on to a DCA. If you are making the contractual payments they are very unlikely to take a reduced amount at the moment.

    Will you be able to make the payments on the loan if you are not working?
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  • Seanymph
    Seanymph Posts: 2,874 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    what are the interest rates on the sums you owe? Do you owe anything else?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary First Post Debt-free and Proud!
    peekingduck101 wrote: »
    Is there any way in which I can reduce the interest on the loan? It's ridiculously high...

    What is the interest rate?
    Also, I am not working now and have a small lump sum of money which I was informed I could potentially offer Natwest for example £600 to pay off my credit card and they would potentially take it, is this correct?

    Have you defaulted on the account?

    If yes, has the account been passed to a DCA?
  • peekingduck101
    peekingduck101 Posts: 2 Newbie
    The interest rate on my loan is about 22.2% APR.

    On the Credit Card, I am not entirely sure.

    I thought that might be the case, that because I've previously made all the payments then it wouldn't be offered. However, going forward I will be living outside of the UK and be classified as being Self-Employed and making a significantly reduced income compared to my previous income, would this effect things?

    Thanks for the replies so far, much appreciated!
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary First Post Debt-free and Proud!
    You need to find out the exact APRs.

    That will enable you to determine the best options for clearing the debts.

    At the very least, it will enable you to determine which debts to aim any spare cash at.

    As to going Self Employed, no it won't change matters.

    So long as you continue to meet the contractual minimum payments, there is no reason for your creditors to accept less than the full amount.

    I suggest you post a SOA (link below), so the good people (aka geniuses) of MSE can take a look and advise you.
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