Vicarious TSB loan negotiations

Tondella

Hello

regular debt free wannabe here.

OH and I have credit card debts and one consolidation loan with Lloyds TSB. On behalf of OH I have brought all the cc debts down to low life of balance APRs and am snowballing repayments to minimise interest charged.

Now that i've got the CCs under control my mind has turned to the loan. Loan is in OH's name, now he's very enthusiastic about tackling these debts but at the same time a bit in the dark about what questions to ask. i've been asking him to get the particulars on this loan but each time he only comes back with one or two bits of information.

Basically I want to know whether it is worth us trying to overpay the loan as a priority over the credit cards. All i know at the moment is that the loan will be paid off in July 2007 and that monthly payments are around £500 (£513 rings a bell but don't quote me). I think the original amount of the loan was around £20k.

What i want to be able to judge is whether it is worth us
a) negotiating a whole new loan at better APR
b) overpaying this existing loan to get it out of the way

So, what should i get him to ask Lloyds to help us make our decision?
he says that the loan was at a preferential rate, to which i raised an eyebrow. Our highest CC APR is 6.9% - is the loan likely to be higher than this?

Thanks for all your help

Tondella

Avogirly

Does the loan have PPI? Good way to start.
Secured or not?
Flexible?
Can you make over payments?
How is interest calculated (daily, monthly)?

Not sure what else as I'm just getting to grips with my Lloyds loan, which is at a higher rate than 6.9%. What they have suggested is that I can apply for a loan elsewhere (eg get settlement figure), if I get accepted and it is at a lower rate, they would match that rate.

Urm... cant think of anything else at the moment.

xXx

Xbigman

You need to write down all your credit details with the APR's and only then can you make a decision. Post it on here if you like. It does come down to the long term APR. With a loan that big it might be your lowest APR but you won't know until you have all the details of the loan. Have you not got the credit agreement you (he) signed?
Regards



X

asandwhen

I think Lloyds let you over pay your loan as long as you are not paying the whole thing off - I had a loan with them that I wanted to pay off early a friend of mine (who works for lloydstsb) told me to pay the balance less one months payments let the last payment come out as normal - hence no early redemtion fees - check with them first though not sure if all loans with them are the same.

Tondella

Avogirly wrote:

Does the loan have PPI? Good way to start.
Secured or not?
Flexible?
Can you make over payments?
How is interest calculated (daily, monthly)?

Not sure what else as I'm just getting to grips with my Lloyds loan, which is at a higher rate than 6.9%. What they have suggested is that I can apply for a loan elsewhere (eg get settlement figure), if I get accepted and it is at a lower rate, they would match that rate.

Urm... cant think of anything else at the moment.

xXx

Hmm, negotiating for them to match the rate is a really good idea, thanks!

Tondella

Xbigman wrote:

You need to write down all your credit details with the APR's and only then can you make a decision. Post it on here if you like. It does come down to the long term APR. With a loan that big it might be your lowest APR but you won't know until you have all the details of the loan. Have you not got the credit agreement you (he) signed?
Regards



X

Agh! paperwork! We don't live together, not even in the same city, so it comes down to him remembering. I do gently remind him (oh, alright, nag!) but he hasn't given me any paperwork so far. I am told that he has it all filed away. Seeing how i have done most of the christmas shopping for his family this year I think i might remind him that he owes me some time spent rooting out those bits of paper.

Tondella

asandwhen wrote:

I think Lloyds let you over pay your loan as long as you are not paying the whole thing off - I had a loan with them that I wanted to pay off early a friend of mine (who works for lloydstsb) told me to pay the balance less one months payments let the last payment come out as normal - hence no early redemtion fees - check with them first though not sure if all loans with them are the same.

Thanks, That's another option I'll look into when we have the figures in front of us. SAdly paying it all off bar the last payment is not an option :rolleyes: , but overpayment can definitely be effected!

dawnylou

LTSB Standard Personal loans and Buy Now Pay Later Loans are both flexible loans in which you can make adhoc payments at any time without being penalised, however if you repay the full loan early you can be charged a maximum of £250 - equal to 58 days interest

As far as interest rates go - they work on an Individual Pricing Plan so you could get any rate from 5.9% to 19.9%.
Although the rate also depends on how much you are borrowing. The best rates usually apply from £7,500.