high interest rate loans

tinkerbell18_2

hi,
I know i have put this thread up before. I got a loan out when i was just 18, i had little credit rating due to my age. I needed a loan for personal reasons and found a company that would accept me if i had a guarantore. My uncle stood guarantore for me and I got he loan. I borrowed 3,000 over three years it will be 2 years since I got out the loan in october. My interest rate is about 42%!! The company that i got it out with have been nothing but trouble sending me letters saying the payment is overdue when the payment is even due.!!! I know i have been extremely stupid and naive.

Any advice please?

~Beanie~

What is your credit rating like, can you get another (and cheaper) loan elsewhere to get rid of it? How much is left outstanding?

MegUK

You should get advice on the new Consumer Credit Act 2006 as it allows for unfair contracts to be looked at again and for the courts to change interest rates if they consider them unfair - you can make an application to court to do this - seek advice from either a debt solicitor or from the Citizens Advice on this -- 42% is extremely high but not unheard of but courts may take a dim view of such interest in all the circumstances -- can also negotiate with creditor mentioning the new Act but you should first get advice on the matter

duff67

Also to above posts - did this loan have Insurance ??

If so was it right to have OR placed on to add to the interest !! If it was wrongly added, placed with loan then a challenge to the coy may mean refunding which again may mean loan repaid.

Caution with agressive approach tho' as Uncle's involvement as G'tor.