Bank Loan problem!!

MoneyWaster2007

The loan is front loaded, meaning a much much higher proportion of the 345 is simply interest at the beginning of your repayments. So basically, you thought you were paying chunks off the balance when in reality you were paying mainly interest. and that explains why the outstanding balance has hardly changed.

Towards the end of the loan, the 345 will consist of minimal interest and your repayments will have a much greater impact on your o/s balance

LP79

So no point in seeing citizens advice then?

MoneyWaster2007

no. The longer the loan term, the more you end up paying back in interest. I had the same realisation myself. My loan was/is over 7 years. After having gone through a year to 2 years worth of repayments i thought it would have become significantly lower. but it doesnt work that way unfortunately. It isnt until towards the end that it really picks up the pace. this is when i had my lightbulb moment. The banks really know how to take the !!!!. I fell for it myself and never again. My advice to you would be to cut out all unneccessary spending to free up more cash to throw into your loan. This is the only way to hit back at the !!!!!!. then this way, your loan will be repaid earlier than scheduled, thusly cutting out a shed load of interest, and in effect giving them the v's for what they have done...banks make me so angry

LP79

I know what you're saying, it's just so gutting as we had planned to refinance to pay for alot of our wedding

Kavanne

i dunno. tell us a bit more about this insurance. why did you take it?

Kavanne

Don't take out a loan to pay for your wedding! That's not the way to start married life!!

LP79

Took the payment protection incase I'm made redundant etc.

MoneyWaster2007

i dont have insurance, as it is unnecessary in my opinion. just another way to get money out of you.

I agree with kavanne, not a good idead to put yourself further into the red, especially when your about to get married. can you postpone the wedding, or go for a cheaper one??

Kavanne

LP79 wrote: »

Took the payment protection incase I'm made redundant etc.

if you took the protection willingly and knew the cost, etc, weren't made to think it was compulsory then yes, the settlement figure is correct and you'll have to pay it to get out of the agreement.

Forris

It seems as though the issue here is with the Payment Protection Insurance. While some people may see it as dodging your responsibilities, it would be worth checking your paperwork for this. Was it mis-sold (although it seems that you knew that you were taking it)? Check through the exclusions in the PPI contract - would you have been able to claim if you were made redundant? If not, you may have a case for mis-selling and reclaiming. Check the 'stickies' on this forum for more info.