Personal Bank Loan

Joey_13

Hi, i took out a personal loan for £1000 pounds from my bank Lloyds TSB.

I took it out around mid July and as i only actually wanted half of it i paid £500 straight back there and then.

I enquired as to the amount currently to be repaid and the interest must be killing me because there is still £460 left to pay. I pay £67 a month repayment.

Is there anything i can do with this as this interest is just ridiculous, i guess i should know better too.

Any help appreciated.

Joey

countrygirl84

The minimum amount for a loan is usually £1000 so if you borrowed from somebody else, you would more than likely have to take £1000 again. If I'm right, it looks as though you took your loan out over 2 years or so? That would be the reason you are paying more interest. The longer you take it over, the more interest you pay. Most compaines allow you to overpay. Are you in a position to pay more per month? If so, contact the bank and see if they will allow it. If you pay more into your loan, it will finish sooner and hence, less interest.
The only other thing I can think of is some credit card companies allow you to do a balance transfer from accounts. I did this a couple of years ago with my overdraft. But not alot of them do. I think it may have been Egg or Mint. So, maybe have a look and see if you can find a good balance transfer rate for a credit card but with one that will allow you to transfer to an account as well as a credit card.
Hope this helps. I'm not to good at explaining things.

~Beanie~

Joey_13 wrote: »

I enquired as to the amount currently to be repaid and the interest must be killing me because there is still £460 left to pay. I pay £67 a month repayment.

Is there anything i can do with this as this interest is just ridiculous, i guess i should know better too.
Joey

The interest rate will be quoted on your original loan agreement...

milliemonster

You would probably have been penalised for paying back £500 straight away anyway because a personal loan is usually inflexible and doesn't allow overpayments. Also most personal loans work the interest into the full term of the loan but your first few payments are usually mostly interest and less capital, this is why it looks like you haven't paid much off so far, your interest rate probably isn't that bad but you should know this from when you signed the agreement?

If you took the loan out mid July, the first repayment won't have been until August, so you have probably only made 3 repayments of £67 anyway, a total of £201, your loan agreement will tell you the total amount payable (which will include your interest payments), the fact you have paid £40 off the capital already suggests to me the interest rate isn't that bad

countrygirl84

milliemonster wrote: »

You would probably have been penalised for paying back £500 straight away anyway because a personal loan is usually inflexible and doesn't allow overpayments.

Sorry but I've got to disagree here. Some companies are inflexible with overpayments but a lot will allow it and although it wouldn't have halved your interest it should have definitely saved you some. Talk to your bank and find out what the deal is because every bank is different. Have a look at the figures and post them on here.

milliemonster

countrygirl84 wrote: »

Sorry but I've got to disagree here. Some companies are inflexible with overpayments but a lot will allow it and although it wouldn't have halved your interest it should have definitely saved you some. Talk to your bank and find out what the deal is because every bank is different. Have a look at the figures and post them on here.

thats what I mean countrygirl by saying he will have been penalised, in that it won't have immediately halved the loan

countrygirl84

milliemonster wrote: »

thats what I mean countrygirl by saying he will have been penalised, in that it won't have immediately halved the loan

Sorry, I thought when you said penalised, you meant he would have been charged or something.

milliemonster

oh that's ok, I probably didn't explain myself properly anyway

Joey_13

Brilliant, thanks for all the help everyone, really appreciated, i'll update you if it goes well.