any experience of GE Money

fionamay41

any advice or help
got a new boiler from british gas 4 yrs ago, was led to believe i had been accepted on a payment plan with british gas, only to find it was arranged through a loan with ge money. have just received a statement from ge money detailing the last years payments (the only statement i can remember receiving) the original loan was for £3300 and i still owe £2800 after 4 years of monthly payments of approx £65.00. i have never missed a payment or had a late payment, currently the monthly payments are manageable but i am not in a position to pay the outstanding balance off in full. the current interest rate with ge money is 20.32%. any suggestions as to how i can reduce this debt any sooner costing me less?

~Brock~

fionamay41 wrote: »

any advice or help
got a new boiler from british gas 4 yrs ago, was led to believe i had been accepted on a payment plan with british gas, only to find it was arranged through a loan with ge money. have just received a statement from ge money detailing the last years payments (the only statement i can remember receiving) the original loan was for £3300 and i still owe £2800 after 4 years of monthly payments of approx £65.00. i have never missed a payment or had a late payment, currently the monthly payments are manageable but i am not in a position to pay the outstanding balance off in full. the current interest rate with ge money is 20.32%. any suggestions as to how i can reduce this debt any sooner costing me less?

We need to know how long the loan was originally over. Also, would it be right to assume that interest is added monthly? This should be pretty clear from the statement you have just received.

fionamay41

122 months and yes the interest is added monthly

~Brock~

fionamay41 wrote: »

122 months and yes the interest is added monthly

OK - there's your problem. In the early years it appears to take ages for the balance to drop.

The best way to overcome this, assuming you cannot just pay it off in one go, is to arrange to overpay it slightly each month (by as much as you can afford). Because the interest is calculated on the outstanding balance each month, not only will you pay less interest the following month, but this will also be compounded into further savings each month afterwards.

You will need to check with GE that they allow overpayments, but I can't think why they shouldn't.

By doing this the balance will drop considerably quicker than it is at the moment.

bekkki1

you can overpay by the same again every month, they will send you some payment slips out if you ring them. You can also ring them and up your monthly DD, both of these are without penalty

fionamay41

thanks just wish i had paid more attention to the agreement at the time