Lloyds TSB Consolidation Loan - Desperately Need Advice

lisaderb

Hi

Thank you for reading this. My friend has a consolidation loan with Lloyds TSB for £4,800.00. She has got to pay £79.92 each month for 140 months. She will be paying £6,388.80 in interest alone. I am shocked at this amount and didn't think banks could charge loan shark rates? I would really appreciate any advice, as she is extremely worried as this will be paid off over 11 years.

Thanks

CLAPTON

you need to encourage her to look at her spending habits and to understand why she is getting into debt

maybe suggest she posts on the debt free wannabe board

loans at 20% are, I'm afraid, relatively modest for people with poor credit ratings (which I'm assuming she has)
If her crdit rating is OK maybe she could get a cheaper laon and pay this off.

churchrat

did I mis read your answer Clapton?? first to admit that I'm cr ap at math but this works out at over £11 000 over the term-- abit more than 20%%%%????????????????????/
could be wrong tho

OP please get your friend to look at the debt free wannebe board, lots of help over there.

CLAPTON

churchrat wrote: »

did I mis read your answer Clapton?? first to admit that I'm cr ap at math but this works out at over £11 000 over the term-- abit more than 20%%%%????????????????????/
could be wrong tho

OP please get your friend to look at the debt free wannebe board, lots of help over there.

I meant 20% APR ... what did you mean?

iolanthe07

My friend has a consolidation loan with Lloyds TSB for £4,800.00. She has got to pay £79.92 each month for 140 months.

I think she needs to check this carefully as they may have made a mistake with the paper work. 140 months is almost 12 years and I'm pretty sure Lloyds TSB would not do an unsecured loan for such a small amount for such a long time. Personal loans like this rarely go beyond 7.5 years.

Amatheya81

My OH just got a consolodation loan with lloyds. He's got poor credit so they did the loan over 7 years slapped on £6,000 of payment protection and gave him a rate of 23%APR. I could of killed him when he told me but as he'd already used the money there was nothing that could be done. It turned a £14,000 debt into a £37,000 debt in one foul swoop.

I would suggest you friend has had something similare done to her.

jonesMUFCforever

iolanthe07 wrote: »

My friend has a consolidation loan with Lloyds TSB for £4,800.00. She has got to pay £79.92 each month for 140 months.

I think she needs to check this carefully as they may have made a mistake with the paper work. 140 months is almost 12 years and I'm pretty sure Lloyds TSB would not do an unsecured loan for such a small amount for such a long time. Personal loans like this rarely go beyond 7.5 years.

It sounds to me like this is a loan set up by the bank's collections team and not something that you would apply for online or in branch.