Please Help Me

Danny1_2

Hi everyone,

Please bear with me as this is my first post on MSE. I have a few debts I REALLY want to sort out. I will list my debts below:

Welcome Car Finance £6,995 (28% APR)

Edge Store Card - GE Capital Bank £521 (29.9% APR)

Halifax Overdraft - £1500 (9.9%ish APR)

My car finance is £235 per month for 4 years (4 months into it ). It is a HP agreement and I seriously regret it, I'm such an idiot.

My income is £1160 per month and I have £300 rent and £40 phone bill to pay a month.

I really want to get rid of the car, I have been advised to get a loan and pay the car finance off as I will only get charged a couple of months interest, so I'm told, but Halifax won't give me a loan!

My main concern is the car to be honest, can someone please give me some advice, I'm 21 and very naive (as you can tell )

Many thanks

Danny

AMILLIONDOLLARS

Do you wish to keep the car? Is there anything wrong with it? Does anyone know whether he can return it at this stage? hold tight I'm sure someone will be along in a minute.

Danny1_2

AMILLIONDOLLARS wrote:

Do you wish to keep the car? Is there anything wrong with it? Does anyone know whether he can return it at this stage? hold tight I'm sure someone will be along in a minute.

No, I don't really want the car to be honest, I know I should have though about this at the time but I was silly.

I just feel so ripped off. They say I can give the car back after I have paid something like £5490 - so I will have nothing to show for it and no car!

I would love to give it back but I don't want to ruin my already rubbish credit rating. If only someone like Ford would give me credit at decent APR

And no, there's nothing wrong with the car, but I feel I have paid around 30% over the odds for it (without intrest!)

Verbatim

I remember a few weeks ago someone explained how she had (legally!) sold her car with the agreement of the finance company. I think you can't just sell it as legally it's not yours but she found a way round this. Can't remember who this poster was but perhaps someone else will.

LITTLEMISSFLOWER

Hi Danny, I Would Try And Get A Loan At A Low Apr. Pay Off The Finance Company And Then Sell The Car And Pay Off The Loan. You Must Check There Is Not Early Repayment Charge On The Loan.that Is What I Did.you Must Not Sell The Car Before Paying Of The Finance Company As It Legally Doesnt Belong To You. Good Luck
If You Cant Get A Loan Is There Anyone Who Would Give You A Short Term Loan Like Your Parents Till You Sell The Car ?

LITTLEMISSFLOWER

Danny, Try Alliance and Leicester for the loan i found them really good.

Danny1_2

Hi Littlemissflower,

Thank for the advice. I've applied with Alliance & Liecester but they declined me . Do you know how much they can charge if the car was £6995?

I was under the impression that it was 2-3 months interest. I would ask my mum for the loan but she would go ballistic because she hates all things credit related (went mad when I got an overdraft!), I know she only cares! I don't live at home so she doesn't know!

Sound like a right mummys boy now!

But anyway, I have been told the only option I have is to pay the finance off for about 6 months then my credit rating will improve and this will enable me to get a loan at a decent rate - is there any other options for me?

So upset

LITTLEMISSFLOWER

Charge For The Loan?

LITTLEMISSFLOWER

£135.24 A Month For 60 Months At 6.1% Total Repayment Would Be £8.114.40 But The Idea Is To Pay Off The Loan Within A Month So You Dont Pay Any Interest. What If You Said To Your Mum That This Is What You Want To Do Because You Know You Made A Mistake And Your Trying To Sort It Out.

loubie_lou

I remember a few weeks ago someone explained how she had (legally!) sold her car with the agreement of the finance company. I think you can't just sell it as legally it's not yours but she found a way round this. Can't remember who this poster was but perhaps someone else will.

Hi Verbatim - I think it was ehallet 'can I pay a debt off a month' not sure tho.

Sorry I don't have the link.

THE_LONE_RANGER_4

hi, welcome car finance that old chestnut yes been there done that you can sell the car with there permision and the money goes to repay the hp agreement but i bet you will be 2000pound or so down so you would need to borrow that ,as you borrowed from welcome i take you either had low wages or poor credit as this is there market,try and sell the car and borrow the differance if not and you dont keep the payments up they will take it back any way as you have not paid a certain amount in your case 4years, probably 9 months ....my advice to any one dont go to theses companies to buy cars on hp it aint worth it join a credit union you can borrow up to 3000-pounds savings permitting and i bought a decent car for that and it aint on hp theres nothing else i think you can do at worst hand it back and arrange a lower repayment programme but as you said nothing to show for it ...i would try first option or just struggle with payments and do with out something else all the best