I'm Confused With A Loan Situation...can Anyone Help??

Pink_lilytree

Hi,

Two years ago my partner and I brought a van on finance, I am paying 21.9% APR which works out at £220 a month for a vehicle which is no longer on the road (loooooong story!) I really resent paying this money to the finance company each month and would like to transfer to either a credit card or take out a loan in order to pay off the outstanding £6600. However I am new to all this and I don't understand all the financial jargon. Could anyone please tell me which I would be better off doing? I would appreciate any advise you could give! Thanks

standupguy

Why would you want to take out a loan? Why not just continue to pay the finance?

Is the van on Hire Purchase?

What condition is the van?

jonesMUFCforever

How is your credit rating.
If it is good then in all probability you should be able to get a cheaper personal loan.

You need to firm up the repayment figure from the finance company and then apply first to your main bank (IMO).
They should be able to tell you if you are eligible for a loan and at what rate without conducting a search on you.

garlicbreadxxx

Hi ! Your current APR ,21.9%, is a bit steep. Your best bet ,in the long run ,would be to pay off the complete debt of 6600.00,by getting another loan, preferably off your current bank(They are usually amicable-They NEED your custom) .This is the easiest option. Your bank will charge you a lot LESS than 21.9%, Im guessing at 9% and downwards,maybe a lot less,it all depends on how long you need to pay it back, and which bank you are with!. x

Pink_lilytree

Thanks for the advice, i will be down to the bank in the morning, my credit rating is perfect so a loan shouldn't be the problem.

The reason I don't want to continue paying the finance is because the interest rate is so high, and thanks to your advise I know that I can cut my payments considerably! Thanks again x