Black Horse Loan is 44.9% APR

london_guy1976

Hi, I was wondering if anyone can offer up some advice for me on this issue. Over a year ago I took out a loan with Black Horse in a bit of desperation but also because I was expecting to receive a bonus from work therefore it was meant to be short-term. Unfortunately it never worked out that was and now I am stuck with the loan from them. I had some debt problems following on from this, but managed to keep up the payments. Now things have improved I am back paying full payments again. The APR on the loan is 44.9% on a £4000 loan, therefore the interest I pay each month is huge and the amount payable is obviously much higher. I have tried many times to ask them to reduce the APR to something reasonable even at half 22% it would seem high to most lenders. But they have refused each time.

Because I had some medium bad credit I can’t obtain another loan to consolidate it to something lower. - So it seems for now I am stuck at this rate and can’t change.

Does anyone know how to get help with this? Granted I did sign the papers at this rate, but I think it’s totally unfair to charge this amount of interest from a large company such as Black Horse.

Thanks very much in advance

JMW77

You must be very high risk, even so that rate is ridiculous .
It really depends on all your other debts on how anyone can help you but i know its not much help but £4000 is not a huge amount of money you need to work out your finances and pay this off asap!
How long is the loan term ,hope its not more than 3 years!

london_guy1976

I realise I singed the paperwork. I was looking for other options to consolidate it elsewhere. I have increaced the loan re-payments above the required amount to pay it off quicker. It would be easy for me to go to a payment plan company (pay plan etc) who would then request they freeze or reduce the APR which is not ideal for them. Instead I am willing to pay over the repayments if they were willing to reduce the APR. The loan was for 3 years, total amount payable on a £3500 loan will be £5,896.64 (interest being £2,396.64) Thanks for your replies. Much appreciated.

~Brock~

uktyler wrote: »

As you have stated already, consolidation is not an option, if your debt problems are that bad speak to a debt charity, or the CAB, they may be able to help you.

.........but at the same time kiss goodbye to any improvements you have been trying to make to your overall credit rating over the last year.

london_guy1976

Agreed. - I was using a payment management program (Debt Advisory Line) but they were awful, underpaying some creditors the agreed amounts etc and taking big management fee each month. This is anohter reason why I wouldnt be able to obtain a loan with any 'high-street' bank. As things improved it was much better for me to just pay the creditors in full directly as per the agreements and hopefully restore the bad credit score that was accumulated over a 6 month period. Even if I have to swallow interest at 44.9%!!!

london_guy1976

I get refused credit everywhere now even though I am on-top of all my payments and not missed any ever. Barclays offered me a loan at 23%APR which by all standards is still extremely high, but....is nearly half of what I am paying to Black Horse so I would of been happy with but that was declined too. I wrote to Black Horse again to ask them if they could consider lowerering it, they said that if I could not meet the payments then they would consider a reduced rate. Ironic in itself. If you maintain payments they wont change, if you start to default they look to reduce it. -I am going to continue to search for a lender that will offer a consolidation loan thats less than 44.9% - there has to be one somewhere

CLAPTON

you credit record history is a bit unclear.

if you have used a debt managment company then presumably you have defaulted on (some ) of your debts
if that is so then it's vey unlikely that anyone will lend you 3,000.

what does your credit file show?