Loan Repayment HELP!

seb2

Hi there,

I am currently repaying a loan at £250 a month, but incurring £90 interest every quarter. In effect, I'm paying £220 off it (£30 a month is interest, technically) - another way of looking at it, is for every 9 months paid off it, the interest almost equates to one month's repayment.

I'm recently married, with NO wedding debt, and just got "square" with bills. I have also changed jobs, and as of April when I start at my new place, my travel costs will go from £140 a month to zero! I can cycle to my new place and won't be forking out bundles to get to work!

I don't know if I'd be classed as an ostrich, buryingmy head in the sand, but I honestly HATE< totally DESPISE, ringing the bank / creditor, to discuss my circumstances, and they can't do anything re: interest or altering the loan etc. I've already had one default for missing a payment due to personal circumstances which would not be considered by them at the end of the phone.

I basically want this debt paid off as soon as possible. The total due over the next 5 - 7 year period (unclear as my monthly repayment goes up slightly every 6 months) is about £14k including all the interest accumulated between now and whenever. On the other hand, a current settlement fee stands at about £8k.

I am so tempted to start my new job and whack the repayment up to something like £350 per month, then up it to £400 after 6 onths (when my wage goes up by £100 a month by then).

I JUST WANT RID - then my money's mine to save for a mortgage!

ANy advice rE: figures at all? I don't want to bite off more than I can chew, but figured someone out there would have a good plan as to how to pay this off without living off bread and water every month, but swiftly get out of this debt and fast.

Thanks!

Seb2

CLAPTON

if you have a debt of 8000 and are paying 30 per month interest that works out at 4.5% APR which seems to be a very low rate
are you sure about that

in any event if you are paying 220 off the captial then it should take less than 3 years to pay off in full


maybe you could post up the full details of the loan
initial amount
apr
period of loan
monthly payment
number of payment made

any PPI etc

seb2

The initial amount was £12k, and the repayment plan had to go on hold for three years due to personal circumstances and an inability to pay anything back at all during that time. Plenty of interest accumulated during that time.

Initial paperwork? Anyone's guess. I've been careless in moving house seven times since I took the loan out.

Statements show £90 per quarter as interest.

If I settled tomorrow it would be £8k or thereabouts, but over the agreed term of however many years it is now (set at 10 when I took the loan out) totals £14k.

seb2

Rang the people at the place, was horrified at the interest being slapped on me every month, which apparently has been HALVED as a good will gesture - my eye!

£500 a month repayment would see the lot paid off inside of three years. Best get budgetting if I want to see any of my life as well as financial freedom before I hit 30!!!