Cahoot flexible loan - getting rid!

clarab_3

Hi Folks,

As you can see from my sig, I'm a member of the Debt free board and trying very hard to clear my debts - £18k down in 3 years

I havent missed a payment in all that time, but my credit report is still poor - I was in quite a mess before I woke up to my situation.

I am coping fine right now and can see myself being debt free with a clean credit score in a few years, but the one cloud on the horizon is my Cahoot loan.

I took it out at 5.9%, it was a flexible loan. As cahoot decided to exit the loan market they have upped my interest rate 4 times - it is currently 17.9%. I know this was done to encourage me to leave, but with my poor credit rating I dont think I can. I am very worried as there is no upper limit of what they can force this to, and I do really want to pay it back.

I am very against me taking new credit, but feel this may be the one time it is advisable to do so - I just want it on a fixed rate so I can manage my outgoings better - its the responsible thing to do!

any advice? the monthly payment on £8000 loan is currently £202.

Rafter

Clarab,

Great achievement getting your debt down so far.

You are right that if you can beat the 17.9% you are being charged by cahoot you should. Don't see it as taking on more borrowing - you are not - you are simply getting yourself a better deal.

Suggest you try the moneysupermarket smart loan finder to see what kind of rate you might get given your credit rating.

Might be worth talking to your bank or to Egg to see if they will give you a better rate, although you don't want to lose your existing 7.66% rate with Egg which is good.

Good luck

R.