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Loan Trouble :-( Help and advice needed
hazbow
Posts: 36 Forumite
I got a loan in Feb 08 for £5000 with 9.9% interest and loan protection over 3 years.
1. The loan was to buy a car and pay for the insurance (im in my early 20s so insurance is high ). Now, cos of changed circumstances, I could really do with a more fuel efficient car. However cos of the market at the moment the car has depreciated loads and is now worth only about half of what is left on the loan. Anything I can do or am I just going to have to stick with it?
2. The loan protection is £28 a month (far too high) so I tried cancelling it today. They told me there would be a £63 charge and due to the way it is calculated it would only reduce my monthly payments by £15 instead of the £28! Is this fair and legal? Also, none of this was explained to me when I took out the loan (i knew i was getting protection at a cost but not the details). What should I do about this? Should I cancel it and then right a letter requesting a refund for mis-selling or send the letter and wait for a response before cancelling?
Any help or advice would be greatly appreciated. I really want to reduce this loan and pay it off as soon as I can.
1. The loan was to buy a car and pay for the insurance (im in my early 20s so insurance is high ). Now, cos of changed circumstances, I could really do with a more fuel efficient car. However cos of the market at the moment the car has depreciated loads and is now worth only about half of what is left on the loan. Anything I can do or am I just going to have to stick with it?
2. The loan protection is £28 a month (far too high) so I tried cancelling it today. They told me there would be a £63 charge and due to the way it is calculated it would only reduce my monthly payments by £15 instead of the £28! Is this fair and legal? Also, none of this was explained to me when I took out the loan (i knew i was getting protection at a cost but not the details). What should I do about this? Should I cancel it and then right a letter requesting a refund for mis-selling or send the letter and wait for a response before cancelling?
Any help or advice would be greatly appreciated. I really want to reduce this loan and pay it off as soon as I can.
Loan (for car) - [STRIKE]£6600 [/STRIKE]/ £2842
Credit Card - [STRIKE]£750[/STRIKE] £0
Credit Card - [STRIKE]£750[/STRIKE] £0
0
Comments
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does no one out there have any advice for me? :-(Loan (for car) - [STRIKE]£6600 [/STRIKE]/ £2842
Credit Card - [STRIKE]£750[/STRIKE] £00 -
1. You may be stuck with it, but are you able to get a 0% creditcard? It may be worth looking at the early settlement charges and see if getting a creditcard that allowed "super balance transfers" (only a few cards do) would allow you to save in the longrun. You may be able to basically transfer the loan balance to a creditcard and not pay interest for up to a year, then possibly try for another 0% card.
2. No idea about the misselling - did they say why the reduction would only be £15? Are they trying to increase the interest rate to compensate for the loss of interest the could have got from the PPI?After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91
Dad Gift 6k ¦ Savings & Inv Tst: £2,500
Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0
Total Owed: £2,270 (+6k) 11/08/20110 -
Hi
You need to ring one of the debt charites with your terms and conditions to hand,.
Also have a read of the PPI reclaiming thread.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insuranceIf you've have not made a mistake, you've made nothing0
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