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Debt Consolidation Loan
I am looking for some help or advice regarding a debt consolidation loan.
In Apr 2004 my daughter took out a debt consolidation loan with her bank for £21,800 over 84 months. When the interest was calculated and then added to the loan this then became a loan of £42,286.44 to be paid in 84 payments of £503.41.
Unfortunately my daughter at some stage through the loan missed 9 payments meaning that she had an arears of £4,530.69, her loan was then passed to the banks debt collection department.
Currently my daughter makes payments each month of £500, however today she was contacted by the debt collection department stating that it was a review of her account. During this review my daught asked for a settlement figure, this was given as £13,040.57. My daughter was then informed that if she was unable to make this payment, she had a further 48 payments to make which total £24,000.
Whilst realising that my daughter defaulted, she has still paid off in the region of £30,000. My question is, can we have this total sum remaining reduced without paying the £13k or do we just have to let it ride and keep paying the £500.
We have thought of taking out a new loan for the £13k, but naturally my daughter does not have a good enough credit rating to get a decent interest rate on a loan.
Kirt
In Apr 2004 my daughter took out a debt consolidation loan with her bank for £21,800 over 84 months. When the interest was calculated and then added to the loan this then became a loan of £42,286.44 to be paid in 84 payments of £503.41.
Unfortunately my daughter at some stage through the loan missed 9 payments meaning that she had an arears of £4,530.69, her loan was then passed to the banks debt collection department.
Currently my daughter makes payments each month of £500, however today she was contacted by the debt collection department stating that it was a review of her account. During this review my daught asked for a settlement figure, this was given as £13,040.57. My daughter was then informed that if she was unable to make this payment, she had a further 48 payments to make which total £24,000.
Whilst realising that my daughter defaulted, she has still paid off in the region of £30,000. My question is, can we have this total sum remaining reduced without paying the £13k or do we just have to let it ride and keep paying the £500.
We have thought of taking out a new loan for the £13k, but naturally my daughter does not have a good enough credit rating to get a decent interest rate on a loan.
Kirt
0
Comments
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Sadly your daughter took out a loan at about 24% APR over 7 years..without knowing when she missed the 9 payments its not possible to calculate how 'fair' the settlement figure is or the number of remaining payments but they seem consistent.
Other than getting a lower APR loan to pay off the 13k I'm afraid I don't see any alternatives.0
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