Loan Advice...Please Help!

superstar_d

Advice needed!

I’m 20 years old, and I am seeking some advice.

I have a current account and a loan with the Yorkshire Bank.

Monthly Salary: £816.39 (after tax and NI)

Outgoings (Per month):
Mobile Phone Contract: £32.00
Car Insurance: £67.93
Petrol: £100.00
Loan: £213.21

Every month I go into my £200 overdraft facility. I have gone through my bank statements from the last two months and worked out what I need to cut back on.


The problem I am currently facing is my loan, which my first payment was the 20/12/05 - i took this out for my car. I have telephoned the bank, today (12th May 2006) and they have said it will cost me £7451.42 to pay it off today for example.

I took a loan over 5 years, and signed up for the insurance on it etc. If I stay with the current loan, it will cost me £12792.60 in total.!!

I think the APR is 14.9. I presume this is either because of my age, or because I don’t have my own home. I have a good credit rating though.

After speaking with my mum she said it was best to have the insurance on the loan, ‘just in case’. She also said to stay with the Yorkshire Bank. I have had a look at other providers, but I am confused and don’t really know what I should be looking for.

Ideally I would like to pay around £200 a month to pay off the loan, as currently it’s an amount I can afford without being too short every month.

Please help me!

lynzpower

Hi there! Welcome!!

Have you ever done an SOA before? Have a look at sticky "first time posters" by southern scouser, tells you all you need to know about a SOA, and how to do one.

One idea might be to transfer the loan onto a low life of balance credit card or 0% card if you can, and thus your payments might be lower. 14.9 on a loan is high, other loans such as cahoot are about 6.

However, do your SOA and see where else we can make some savings- the sooner this loan is paid off the better

Pobby

Hi and welcome.Good advice from lynzpower.I have my god daughter with a £5.5k car loan which she will be paying £9.5k with interest.I have implored her to get a lower a.p.r but so far hasn`t bothered to do anything about it.Was the loan provided via a garage?

superstar_d

Hi Pobby,

The loan is provided by the Yorkshire Bank. I didn't even realise how much I was actually paying until I sat down and started to figure out where all my money was going!

lynzpower - Thanks for the advice, I will go and have a look at the SOA info

superstar_d

Monthly Incomings:

My salary - £816.39 (after tax and NI)

Monthly Outgoings:

Rent/Board - £0 (Currently not paying board due to situation)
Phone - £32.00
Car Insurance - £67.93
Petrol - £100.00
Loan - 213.21
Credit Card - £50 (Currently £200 on Visa - Paying 0% for 9 months with Lloyds TSB)

Total: £463.14

I have an overdraft of £200 with the Yorkshire Bank - 17.68% PA

I usually use most of thr £200 overdraft every month, on purchases I don't need - clothes, going out etc etc.

I can easily cut down on the going on and clothes purchases, which I have already done (As I don't have any money until payday -17th) I intend to stop the way I have been spending previously.

I have/will stop spending as much on petrol, by cutting back on 'going for a drive' journeys, I don't need to make.

Pobby

Yes the interest rate you are paying is pretty steep.If you could get a cheaper loan,the difference would be quite dramatic.Have you thought that your mobile is again fairly expensive?I have O2 as my provider and I am a VERY heavy user.I rang them to ask for a better deal and got it.Typical a month was around £100 now almost half.You do sound very much like my god daughter who is also 20 this week.Goes on holiday abroad twice a year,smokes,goes out and then complains she has no money----lol!