Help needed- payments too much and I feel in a mess

janr13

Bought a car approx £5000. As I am not a good credit bet I took what I could get really...hire purchase at 39% APR. It was on a 'needs must' basis as I work for em. services and need my car.Am in trouble with money- but managing to carry on paying monthly payments. I asked for a settle price- and even though I had been paying this for a year, the settlement price is £6500. I guess the interest is all being paid up front, and the actual car price is not being paid at all. have other outgoings and in danger of going under now. I want to keep on top.

I can't seem to get round this. How can I transfer this into a loan with a more realistic and manageable APR? And as I am not classed as a good credit bet. (Though I am not in debt now, there is a poor credit scoring based on the past. ) I could get a guarantor- might they go for this?

Please help- and thoughts will be pondered on. Stress levels are high

chalkie99

janr13 wrote: »

Bought a car approx £5000. As I am not a good credit bet I took what I could get really...hire purchase at 39% APR. ...........

........(Though I am not in debt now,

But you are, you owe for the car.

SaffiesMum

Any chance you could trade your car in for a cheaper one? My sister is currently looking for something around £2000 and there seem to be a few bargains about in that price range

janr13

chalkie99 wrote: »

But you are, you owe for the car.

Yes- sorry, meant to say at the moment I'm not in debt crisis as I'm managing to keep things up..but how long for is a worry...

janr13

Thanks- and Yes- could sell it, and I guess that would go towards the settlement price. So then I'd need another car- as you say a cheaper one....but I'm still paying off the HP at 39%- What I want is a cheaper APR really

chalkie99

Realistically, what you are looking for is a loan to pay off the HP.

Unfortunately, any lender will have no guarantee that you would use a loan to actually pay off the existing debt so you will effectively be borrowing an extra £6500 on top of the HP figure.

It is going to depend, to an extent, on your total income and total debts but, as you say you don't have a great credit rating then you are unlikely to get a very competitive offer.

First step, I think, is to state your debt total and income and see if anyone thinks you would be granted the new loan at all.

janr13

I'll ponder on that one Chalkie99- thanks