Heeelp please.

tomandjerry

Hi everyone,

Last year at the end of July I took a secured loan (Lloyds TSB)for over £18k to pay off my huge credit card bill and an unsecured loan I'd taken online. With insurance it's about £24k and eventually after 5 years I'm going to pay £38k. (Due to my unemplyment 3 years ago my cr. card bill hit the sky and I wanted to clear it with unsecured loan. I'm emplyed now.)
The monthly instalments are £194 higher than before and the cr. card bill is growing again and the salary hasn't changed much, actually it went down a bit for a few months due to my course. When I went to see my bank manger in Feb this year and asked whether I could decrease the monthly payments, I was told I need to wait until July this year and it would be great if I get money from somewhere to show the bank that I can efford to pay my loan and so they can decrease the monthly payment.

Please, any great suggestions?
I'm desperate.:eek:

millsee

I'd suggest you wander over to the DFW board, fill in an SOA and take it from there.

This statement should really worry you:

the cr. card bill is growing again

You took out a loan to transfer your debt from your credit card, then went out and used your credit card again.

Job 1: Cut up the card. Stop using it. Throw it away. Melt it. Now.

Are you still here? Have you cut up that card yet?

grumbler

Hi

tomandjerry wrote:

Please, any great suggestions?

Reducing monthly payments is a bad idea: Danger! Avoid Minimum Repayments

You should think about either reducing outgoings or making more money (or evern about both reducing and making more). A god idea is to visit Debt-Free Wannabe board and post there ...

See also Where to Start with Problem Debts? article.

Rafter

You are still living beyond your means (more going out than is coming in) and until you have a 'lightbulb' moment and stop spending things aren't going to improve.

You can't just keep putting off paying your debt.

As already suggested - post a statement of affairs - take the advice about ripping up your credit card and produce a budget each month so you don't go into the red.

Good luck.

R.

tomandjerry

millsee wrote:

I'd suggest you wander over to the DFW board, fill in an SOA and take it from there.

This statement should really worry you:

the cr. card bill is growing again

You took out a loan to transfer your debt from your credit card, then went out and used your credit card again.

Job 1: Cut up the card. Stop using it. Throw it away. Melt it. Now.

Are you still here? Have you cut up that card yet?

Unfortunately the cr. card is the only way I can pay e.g. my food shopping (I don't go out much, can't efford it) or other essentials.
I've been on DFW Board,:T

sleepless_saver

tomandjerry wrote:

Hi everyone,

With insurance it's about £24k and eventually after 5 years I'm going to pay £38k.

Why do you need the insurance? Is this PPI? If so consider ditching it. See Martin's article

tomandjerry

sleepless_saver wrote:

Why do you need the insurance? Is this PPI? If so consider ditching it. See Martin's article

Original loan was over £18k with insurance is something over £24k and £38k is with the interest.:sad:

tomandjerry

Hi there,

It's a loan we're talking about and it's insurance I have to pay (very high rate). Just 2 days ago I asked whether it would be possible to get a lower rate but I was rejected. Is there any option for cutting down on a monthly repayments, it's just ridiculously high?

grumbler

See http://www.whatsthecost.com/loan.aspx
From your figures I see that your APR is about 20% :eek: and monthly payments are about £635. For the same £24K loan over 7 years, monthly payments are just £100 less, but the total cost rises from £38K-£24K=£12K to about £20K. Also if you try extending the term of the loan with the same company in order to reduce monthly payments, they will add extra few thousands to the loan for extra insurance.
Reducing monthly payments just by £100 will cost you extra more than £10K. Think again about this.:think:

Probably, it is worth trying to find another loan with lower APR instead, although early settlement of the current loan could be a big problem.

tomandjerry

grumbler wrote:

See http://www.whatsthecost.com/loan.aspx
From your figures I see that your APR is about 20% :eek: and monthly payments are about £635. For the same £24K loan over 7 years, monthly payments are just £100 less, but the total cost rises from £38K-£24K=£12K to about £20K. Also if you try extending the term of the loan with the same company in order to reduce monthly payments, they will add extra few thousands to the loan for extra insurance.
Reducing monthly payments just by £100 will cost you extra more than £10K. Think again about this.:think:

Probably, it is worth trying to find another loan with lower APR instead, although early settlement of the current loan could be a big problem.

Thank you Grumbler, you are absolutely right. Lowering the monthly payments would increase the loan. I suppose I have to leave it as it is.
Tomandjerry.

tomandjerry

grumbler wrote:

See http://www.whatsthecost.com/loan.aspx
From your figures I see that your APR is about 20% :eek: and monthly payments are about £635. For the same £24K loan over 7 years, monthly payments are just £100 less, but the total cost rises from £38K-£24K=£12K to about £20K. Also if you try extending the term of the loan with the same company in order to reduce monthly payments, they will add extra few thousands to the loan for extra insurance.
Reducing monthly payments just by £100 will cost you extra more than £10K. Think again about this.:think:

Probably, it is worth trying to find another loan with lower APR instead, although early settlement of the current loan could be a big problem.

How big this problem would be? When do you recommend me to go for early settlement?
Thanks,
taj :question: :think: