right - hope i have done the right thing

BeautyandtheBeast_3

I have spoken to my bank as i was paying 14.9% on my loan and they have got offer on for 8.7% so i have asked if i can change that loan rate to the lower one. They have said i can but over an extra 12 months so it will be 60 months before completely debt free. I have agreed in principle as it will lower my monthly expenditure by £50 and will allow me to pay more off the other committments i currently have got. I am also happier that i got it at a much better rate. What do you think - good idea or not??

I have also had my CC limit within reduced down to £2000 rather than £4500 which im happy about because thats the one i want to close when the balance transfer goes through as that is costing me 20.9%.

Jesthar

If you're happy about having the extra 12 months commitment and you're SURE you WILL be disciplined about putting the money to overpaying on your CCs, then this may be one of the rare occasions where it could be worth it. Make sure you read all the T&Cs, though. You might want to check whether or not you can overpay on it, too, in case you reach a point where you are able to.

And, in particular, run all the figures through the Snowball calculator first to make sure it won't cost you money in the long run!

And excellent move lowering the balance on your CC!:T

Tixy

Agree with Jesthar but make sure when you check the paperwork that the new loan is fixed not a variable interest rate.

Jesthar

Tixy wrote: »

Agree with Jesthar but make sure when you check the paperwork that the new loan is fixed not a variable interest rate.

Thanks, Tixy, good spot - knew I'd forgotten something!

BeautyandtheBeast_3

Yes it is fixed but not sure about overpayments i will check it out tomorrow when i go to the bank to sign it off. if im not happy though i wont sign. i think i will be disciplined enough and i have wage rise by £251 extra in september so after tax etc i should be abe to get rid of some big debts and finally stop using my cards to live on!!!!!

tyllwyd

You could try putting the figures into a loan calculator to see how much you would pay in total at the original rate, compared to the new term at the new lower rate. But if you are happy with the new monthly payments & you've got other debts to pay as well at higher interest rates, it sounds like a good idea.

BeautyandtheBeast_3

tyllwyd wrote: »

You could try putting the figures into a loan calculator to see how much you would pay in total at the original rate, compared to the new term at the new lower rate. But if you are happy with the new monthly payments & you've got other debts to pay as well at higher interest rates, it sounds like a good idea.

can you point me in the right direction for the calculator please? thanks :beer:

BeautyandtheBeast_3

right worked it as best as i can and i will be paying an extra £300 in overall interest but that is as best as i can do as i cant remember what the original loan amont was for - i remember that overall i was originally paying back a total of £17892.42 now i will be paying a total of £15207.34. hope that makes sense??

Katy_M_2

BeautyandtheBeast wrote: »

I have spoken to my bank as i was paying 14.9% on my loan and they have got offer on for 8.7% so i have asked if i can change that loan rate to the lower one. They have said i can but over an extra 12 months so it will be 60 months before completely debt free. I have agreed in principle as it will lower my monthly expenditure by £50 and will allow me to pay more off the other committments i currently have got. I am also happier that i got it at a much better rate. What do you think - good idea or not??

I have also had my CC limit within reduced down to £2000 rather than £4500 which im happy about because thats the one i want to close when the balance transfer goes through as that is costing me 20.9%.

:eek: Good God you are becoming unstoppable!

I really really wanted to re-finance my loan to somewhere else with a better APR.

I hate my loan sooo much. But because I've paid a years worth off now...all the interest was in the first year....so changing it to somewhere else doesn't really seem worth it anymore as I've paid all the interest off...If I re-finance it I will just be paying more off on top....I think..so its not worth it. What i want to do is wait a few months and transfer the balance onto a credit card where I can make extra payments as and when I like.

I really don't know what to suggest for you on this one...it's a thin line really with loans. As you will be paying off more in the long run and over a longer period of time.

But, if you think having the extra £50 per month will help you to pay off your other debts quicker.....maybe once they're paid off you could do the same further down the line (also when your loan will be a lot less) and move it to a credit card with 0% on balance transfer for a time and then you can make extra payments and get it paid off sooner.

Tricky this one. Just make sure you are 100% decided and hold out for more advice on here.

Reducing CC limits is defo a good idea though. Some people say that it is a good idea to leave some credit available so that possible lenders don't think that you are always living at your limit....but if the temptation is too much etc then it's defo worth reducing them.

:T:T :beer: :T:T

tyllwyd

BeautyandtheBeast wrote: »

right worked it as best as i can and i will be paying an extra £300 in overall interest but that is as best as i can do as i cant remember what the original loan amont was for - i remember that overall i was originally paying back a total of £17892.42 now i will be paying a total of £15207.34. hope that makes sense??

I'm not sure it does .... So the total repayable including interest over the whole of the first loan was £17892. You have paid back a certain amount, and you have taken out a new loan which will be £15207 including interest over the period of that new loan. How much would you have left to pay if you don't take out the new loan (ie how many monthly payments and what are they?)

BeautyandtheBeast_3

tyllwyd wrote: »

I'm not sure it does .... So the total repayable including interest over the whole of the first loan was £17892. You have paid back a certain amount, and you have taken out a new loan which will be £15207 including interest over the period of that new loan. How much would you have left to pay if you don't take out the new loan (ie how many monthly payments and what are they?)

£13717 would be left to pay with £298.20 per month repayment. You see thats crippling me at the moment and im having to use my CC to last to the end of the month.