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How to reduce Loan Interest?

forsya
forsya Posts: 251 Forumite
Part of the Furniture Combo Breaker
in Debt-free wannabe
Hi

I am new to this site, so please bare with me! I have just admitted and realised how much debt I am in...

I am now keen to sort it out.

Can anyone advise how I can reduce the interest rate of my loan? I am currently with Cahoot and paying 8.9%. I know I can move to Northern Rock for 5.7% approx, but I want to reduce it even more than that or am I'm being unrealistic.

I have seen a couple of comments from people where you can ring debt companies who negotiate your interest rate for you or freeze it?

Is this correct? If so how do I go about doing that and are there any special T&C's??

Any help would be appreciated it.
Thanks
Became debt free in 2007 after having £15k of debt. Have been a stranger to MSE and now want to get back into my old MSE habits and save, save, save

Comments

  • shays_mum
    shays_mum Posts: 1,694 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you look above your original posting, you will see the links to all the debtlines etc. It says 'where to start with problem debts'. Hope this helps, goodluck :)
    No one said it was gonna be easy!
  • southernscouser
    southernscouser Posts: 33,745 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    5.7% is about the best you can get. You MAY be able to get interest frozen but only if you are in financial difficulties!
  • bonnie_2
    bonnie_2 Posts: 1,463 Forumite
    even on a debt management plan it is hit and miss who freezes interest all my hubbies did apart from 2 accounts with hsbc.
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