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mrcow

You need to get a settlement figure from them before you can make any decisions on this.

shellsuit

mrcow wrote: »

You are not "releasing" money!!!

What money do you think you are "releasing"? It's not your money! You will have borrowed it and will have to pay it back, plus a lot extra on top.

You have already paid £1500 in interest in the past 3 years. That money was your money that you could have spent on whatever you wanted and you have given it to Halifax.

Why would you want to repeat the process for no good reason?

If you like to give away money for no reason, chuck some in my direction!

Have to agree with mrcow, crisp.

What you're saying is, you borrowed £3000. You were paying £75 a month and now because you only owe £1250, you want to get another loan, still pay the £75 a month, but would use the new loan funds to purchase a car?

Well you could do that, but why get into further debt for another 5 or however many years?

If you want a cheap runaround, couldn't you save some cash??

Just think of the interest you would pay on a new loan, plus the loan itself, not to mention the duration of it (X years) ~ madness!

crisp02

Ok what about paying the debt off when i get a settlement figure, with my HSBC overdraft facility, which is £1.500, will the debt be less.

mrcow

You need to get the settlement figure first.

crisp02

thanks, i will be back later.

crisp02

The settlement figure is £1285

shellsuit

crisp02 wrote: »

The settlement figure is £1285

Which is more than you owe currently. That's just what you owe and probably a fee for paying it off early.

Not worth it at all.

If you must have a car and can't wait or save, then how much do you need?

Say for example you want £2000. Ask the Halifax what the rates and repayments would be on a £3250 loan. (Which is what you already owe them and the extra 2K or however much you want, for another car).

crisp02

What about using the overdraft to pay off the loan, i have a facility with HSBC, or will it work out the same.

shellsuit

If you use your overdraft to pay off the loan, where are you going to get the funds from for the car you want?

mrcow

So the settlement figure is actually more than you will pay by just finishing off the loan on current terms.

Don't do anything with it. Just pay off the £75 per month. It's the cheapest option. Let the loan finish in 2010 and don't sign up for any more of them.

Don't use your overdraft. It will work out more expensive.

With regards to your car, if it's still going, then just keep it going for now. Have you got a savings account? If so, start putting some money into it for a car fund for when your car does finally konks out.

It may sound a boring way of doing things, but please trust me on this one. You don't want to sign up to any more debt. You got ripped off last time, just learn from it and move on.