Getting out of a loan? paying off early?

Lucyxx

Is there anyway to do this???

I'm currently going through my OH's accounts as he has recently confessed that he has got into trouble with CC's, etc etc and has no clue with anything money related. Thanks to this site over the last few weeks we have taken huge steps to work this out and get back on track.

However I then discovered that a loan he took out in 2007, a buy now pay later type deal with Lloyds TSB, which is due to have payments made back for another 5 YEARS!! Now he had led me to believe it was only a couple of months left originally, so as you can imagine I was furious!!!

He also signed up to PPI at which he thought was £40 per month, but after we had an account meeting at Lloyds the other day it turns out this is actually £80. Now with his track record of not being entirely honest I have asked him to find any relevant documents detailing the payments etc, incase there is anyway to make a claim if he was missold the PPI (it was done over the phone). If it says in black and white that it was £80 then he is quite clearly lying again!

Is there anyway you can get out of a loan early??? he is likely to have a large chunk of money in the next few months as he can sell off quite a few shares he has. (Money that would have been for a new kitchen, but is now out of necessity having to go on his debts:mad: ).

I have no ideas about loans as I have never had one, so don't even know if it is possible. I imagine there will be a penalty charge if you can to cover their loss of interest?!

I'm just so furious that he took this out in order to "top up" his bank account, and has committed us to pay over £200 a month for the next 5 years (well 7, as he has paid it for 2 years already) the really annoying thing is we were selling our house and buying a bigger one that same year and he knew we were keeping back some of the equity after the sale, so he would have had "extra" money then. There was absolutely NO need for this loan, other than having a larger bank balance!!! GRR!!!

Any advice or are we stuck with this for 5 years?? The money I thought he would be not paying for the loan I had planned for throwing at the CC debt, but obviously will not necessarily be the case!

TIA

Lucy xx

CLAPTON

You can settle the loan early... you may have to pay a couple of month interest but that's not too bad. Ask for a written settlement figure and see what it says.

You may well be able to reclaim PPI.. try reading the thread of reclaiming.

What happened to the money?

freeasabird

I was thinking the same thing. What has happened to the money? I've had to deal with a relatlive who took out an illadvised loan (strangely enough with Lloyds TSB) and what they told me and what turned out to be the truth were two entirely different things. It was partly because they didn't check the small print andl also because they were very economical with the truth. Inconsistencies started to worry me when for example they spent money on items that were not necessary instead of paying off the load. You said that funds were available due to a house move so taking out loans at that time does sound odd. The best case scenario. The partner, like my relative is simply a bit wotless. The worst case scenario, they may have an addition that they're using the money to fund. I don't want to worry you but you need to sort this out before you take on more financial burdens by moving to a bigger house.

Lucyxx

Thank you both for your replies.

freeasabird - we bought this bigger house at the end of 2007, and the loan he took out would have been earlier that year. We knew in 2006 we would be selling up and buying bigger, so why on earth he didn't take this into consideration I do not know! It was only approx a month ago I found out about the money issue!

I really have no clue what the money went on, he is saying day to day living, but his wages account for all the bills, we have spent alot on food and eating out, but have had no major purchases at all. There is absolutely nothing to show for it! He has also spent his inheritance, the money left over from the house sale, and purchase, money given to us by parents when we moved (so about £10,500 including the loan) plus racked up 9k on credit cards!

I've accused him of gambling, and even having a secret family somewhere, but he promises me that's not the case. I really am at a loss as to what he has spent it on.

Honestly, his family gave him no real advice on money, ever, and his dad is absolutely hopeless even now, they had bailiffs round when they were younger, his dad left his mum saddled with 10's of thousands of pounds of debt she had no idea about, and he has had his house repossessed, he had also said he'd been burgled before that, but it is more likely it was bailiffs. After having his house repossessed (he said he sold it) he then suddenly rented out a room in a house, not normally the actions of someone who would have just sold a house and made a nice profit on it! So my OH has not really had a very good role model!!! He also hasn't exactly got off his backside and armed himself with knowledge either though. Lloyds seemed to send an awful lot of loan junk mail through the post and I now realise it was roughly around the time he was due to finish the other one. It did not register with him, that it was purely for their benefit to hook him into another one, rather than his.

He himself will freely admit (now!) that he is hopeless with money. I was relying on him to be keeping us afloat as I am now a SAHM, with no income of my own. I have made him sign up to online banking so I can keep an eye on his account (we don't have it as joint, which I am fine with) and also so he can keep an eye on it aswell (his outgoings are slightly harder to work out as his wages are paid every 4 weeks, plus he has company expenses, normally around £700 that come out of his account and then the difference that he is owed is put back in a couple of weeks later)

I think after getting him to find all the loan info, if it turns out it is not clear how much the PPI was I will try reclaiming and then get him to ask for a settlement figure.

I really think he has had his lightbulb moment now, and knows this has got to stop. To his credit he has actually gone out and got himself more work in the evenings to help get himself out of this mess.

Thanks again for your replies. Sorry for the huge message!

Lucy x

CLAPTON

I'm a little confused about the actual money situation but from what you say a lot of money is being spent that isn't matched by earnings.

Have you worked out a proper budget ... this is a good format as it listed income, spending, debts, savings, assets etc to be clearly listed.
http://www.makesenseofcards.com/soacalc.html

It may help if both of you to keep spending diaries.. i.e. list every single thing you spend ... it can be a real eye opener where money is really going.
Also work out all the annual and one off spending too.

Having online access to the bank account can be very useful; especially if you both sit down once every couple of weeks and go through it.

Feel free to post it up here or on the debt free wannabe board ( lots of support and help over there if a little bit busy)

Lucyxx

CLAPTON wrote: »

I'm a little confused about the actual money situation but from what you say a lot of money is being spent that isn't matched by earnings.

Have you worked out a proper budget ... this is a good format as it listed income, spending, debts, savings, assets etc to be clearly listed.
http://www.makesenseofcards.com/soacalc.html

It may help if both of you to keep spending diaries.. i.e. list every single thing you spend ... it can be a real eye opener where money is really going.
Also work out all the annual and one off spending too.

Having online access to the bank account can be very useful; especially if you both sit down once every couple of weeks and go through it.

Feel free to post it up here or on the debt free wannabe board ( lots of support and help over there if a little bit busy)

Sorry, I do tend to waffle in my posts, it makes sense in my head, but I can understand to others it doesn't!!!

We have done a SOA and made some changes already like cancelling skysports and movies (couldn't bring ourselves to go the whole way and get rid totally!), meal planning and other bits and bobs and in some sort of weird way I am actually really enjoying doing this, I'm almost finding it addictive!

A spending diary is a very good idea. It will definitely help to see if we buy any unnecessary things without realising, and using the budget planner might be a good idea to have it all written down on something better than the notes we've been writing ourselves!


This might sound daft but I am too shy to post up a diary on the DFW thread although I have been popping in over the last couple of weeks and picking up invaluable advice and hints from other peoples. Everyone seems a really good bunch over there

Thanks again for your help :beer:

Next port of call then is to sort out getting out of this bloomin loan!!!!

Lucyxx

Charli159 wrote: »

Very similar situation to what im in with my OH....grrr men!

See thread: http://forums.moneysavingexpert.com/showthread.html?t=1548847

OMG That does sound very similar!!

I need my OH to dig out all the paperwork next in order to find out if he did or did not know how much the PPI was. Then I will try and reclaim there if poss. I also do not know any details about the APR etc yet, and have got a massive feeling that convieniantly the paperwork will have found itself being thrown in the bin when I wasn't looking. :rolleyes: Just another headache to add to the mess!

freeasabird

Lucyxx, I can't add to the advice that you've been given about budgeting and keeping an eye on your income with online banking. To help me budget, I run two bank accounts. One has only the money in it I need to pay bills and that's a set amount based on what the average of what I should be spending each month. In your case, opening any more accounts might make the situation even more confusing.

I haven't been able to get the paperwork from my relative so I'd had to just hope and pray that they've taken my advice and sorted it out. They say they don't owe any money now but to be honest, I'm not 100% sure. There is a history of bad money management that goes back many years. They don't seem to understand that having an oustanding debt and spending money on other things will cost them considerably more in interest payments. Take care and I hope you can sort this out. Your OH is lucky to have you as a partner.