some help please!!!!!

windypete

hello i'm new on here so hi to you all :j
wanna see what you all think! i have a loan of £2300 and have monthly payments of £80 but this only pays aout £18 off the loan so i want to change it do i get a credit card with a long intrest free period on it or go with a better loan from another bank that pays more off the amount owed? or if anyone has better ideas i'd welcome some advice.

thanks.

MrMuttley

Are you aure you have you math correct there? 2300 divded by 18 = 127 months to pay off the loan. Thats over 10 years. no normal loan agreement would cover 2300 over more than about 3 years

How about we get a bit more nformation such as APR % on the loan and if its anything other than a normal unsecured loan from a bank.

Maybee we can give you a bit better advice then.

Cheers

Mike

Tixy

Hi Pete and welcome

As Mr Muttley says that doesn't look quite right. You need to find out the APR on your loan. What was the original amount of the loan and how long was it taken out over? Also do you have PPI on the loan? Look out the original loan agreement and see whether overpayments are allowed on the loan.

You need all this information to decide on a course of action. Also how is your credit rating? It is possible to transfer a loan to a credit card if the card is a 'super balance transfer' card but really we need more information.

Also if the APR is some ridiculously high percentage can you also tell us who the loan is with.

Thanks

windypete

hi ya
sorry about lack of info as i was harf asleep when i posted. well first up its a like a personal account loan where i have a credit limit, i got it to get a car with a year or so ago currently i owe £2300 on it, it takes a minumum of £80 a month direct debit from my bank account but only around £18 comes of the total with the rest going on intrest! not good i know! ican pay more off every month but have found it hard as other things need paying aswell, the APR is 25.9%. i am getting to learn about finances now some what & know this is a bad account to have, so would like to know anybodys ideas as how to & where to move my bebt to ie intrest free credit cards or other bank loans so i can clear it most cost effectaly?.

any help would be welcomed
windypete

GeorgeUK

Have you had a statement for this loan?
I still can't get the math to work.

2300 @ 25.9% APR = interest of 44.57

The only thing i can think of is perhaps the loan has payment protection insurance.
Is this correct? Did you ask for this to be added? If not then you may be able to claim it back if it was missold.

If you don't have late payments, default or CCJ's then i would advise looking into getting a 0% Virgin credit card. This allows balance transfers and also money transfers as part of the promotion so you would be able to transfer funds to your current account and use this cash to pay off the loan. It is 16 months at 0% and only 1% minimum monthly payment (min of £25).

If you don't get the card, i would advise not applying to more than one other place. You will need to make sure that they allow 'super balance transfers' or money transfers as part of the promotion though.

BeautyandtheBeast_3

egg are currently doing a 0% until Oct 2010 balance transfer (which mine covers Overdrafts to go onto the card) so perhaps that may be worth looking at? could you pay off £100 per month then it would be just 24 months - 12 months on one card and then perhps 12 months down the line opt for another one??

Tixy

http://www.stoozing.com/sbt.phpThis is a list of super transfer cards. Any of these would allow you to transfer money to your current account, which you can then transfer across to the loan. If you manage to get one of these accounts and do repay your loan, make sure you do close the loan account afterwards! (Also never spend on a card you have BT to -cut up the card straight away)

gfplux

Hello windypete,
Good to hear you are learning about money. You also need to learn about YOUR money.
Therefore you should :- Make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
When making out your SOA (Statement Of Affairs) try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date. In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.
If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax is it over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.


Good Luck