How can i reduce my APR

max101

i'm looking for advice to reduce my annual interests rates and pay of my debts as quickly as i can. The following are a list of my debts;

1. A&L Unsecured Loan £25,000 connected to mortgage taken over the lifetime of the mortgage 25 years APR 2.49%

2. Lloyds TSB Unsecured Loan £11,000 over 8 years, monthly repayment of £258, APR 24%

3. Barclaycard Credit Card, outsanding balance £1760, APR 6.5%

4. Citi Bank Credit Card, outstanding balance £3300, APR 6.5%

5. Virgin Credit Card, outstanding balance £3500, APR 29.9%



Are there any options to reduce the APR of the Virgin card and Lloyds Loan, i tried to get a loan with Sainsburys and Zopa but was refused. I want to pay off my debts as quickly as possible and pay the least amount of interest.

niccatw

Hi Max101

When did you apply for the loans? Have you checked your credit report? If you've never defaulted on any of your loans, it may be that they feel you have too much credit already. It may be an idea to speak to your local credit union re. the TSB loan.

For the others, if it's possible, you'd be better transferring the balance to 0% cards or balance for life cards.

If you post a statement of affairs on here, people will be able to advise where savings can be made too. Sometimes the advice is staright to the point, but it's always well meant. http://www.makesenseofcards.com/soacalc.html

Play about with the snowball calculator to. http://www.makesenseofcards.com/snowcalc.html


Welcome aboard and good luck

DarkConvict

Citi Bank Credit Card & Barclaycard Credit Card are nice and low, if they try to increase the rate you can stop them - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

With regards to bringing them down, aside from a balance transfer or paying them off, there isn't anything you can do other than to ask for a reduction. They are almost certainly going to say no to reducing it.

savingmummy

You wont get the aprs`s down they are fixed.
You would be better off doing as above IF thats what you want to do.

max101

NICCTW - what would a credit union do about the LLoyds loan?

i applied for the Zopa one recently, and the Sainsbury's last month. My credit rating is good, so i think it must be the amout of credit that i have is why there not lending.

The Barclay card and Citi CC are on Life of the balance rates. Its really only the Lloyds Loan and Virgin credit card i want to reduce. I have banked with lloyds for over 10 years, i'm annoyed that i accepted their rate of 24%. whats the chances of lloyds reducing the rate if i speak with them and will this affect my credit rating.

Will i not get refused for credit cards as well, because of my outstanding credit and would this not look bad on my credit report if i have a lot of credit cards.

RAS

max101 wrote: »

3. Barclaycard Credit Card, outsanding balance £1760, APR 6.5%

4. Citi Bank Credit Card, outstanding balance £3300, APR 6.5%

5. Virgin Credit Card, outstanding balance £3500, APR 29.9%
.

What are then limits on those cards?

Also are you able to pay extra onto the loan without early redemption penalties?

pepe2008

As long as you are up to date with payments.

You could ask for a reduction from Virgin, always worth it. Say that you have been looking at other CC deals as their rate is quite high, but you would be happy to stay with them if they could do something with heir rate.

Or you could try one of your other CCs and try for a Balance For Life type deal, they can only say no.

DO NOT swap any unsecured borrowing for SECURED! You already owe a fair bit, but at least most is unsecured. Do you need to seek advice on your situation in General?

max101

Virgin CC Limit £5,000
Citi CC Limit £4,500
Barclaycard Limit £2,500

I can pay extra into the loans, at any point and there are no early redemption penalties, which is good.

pepe2008 - Yes i'm looking for some general advice.

RAS

max101 wrote: »

3. Barclaycard Credit Card, outsanding balance £1760, APR 6.5% Limit £2,500

4. Citi Bank Credit Card, outstanding balance £3300, APR 6.5% Limit £4,500

5. Virgin Credit Card, outstanding balance £3500, APR 29.9% Limit £5,000

Start by reducuing your limit on the Virgin card to £4,000
Then move £750 to the Barclaycard (coming to that ina mo)
and move £1100 to the Citi card
That leaves you £1700 on the Virgin card

Put both sets of numbers in the snowball at www.whatsthecost.com

max101 wrote: »

3. Barclaycard Credit Card, outstanding balance £2460, APR 6.5% Limit £2,500

4. Citi Bank Credit Card, outstanding balance £4400, APR 6.5% Limit £4,500

5. Virgin Credit Card, outstanding balance £1700, APR 29.9% Limit £5,000

You may well have to do this over time and it demands massive discipline.

Pay a major bill with the Barclaycard or citi card. Immediately pay off the same amount towards the Virgin card. You have not increased your total debt but you have shifted that sum of money from a 29.9% card to a 6.5% card.

Now throw every last penny (including those you save from the tranfer each month towards the Virgin card. Also reduce the limit on the V card to say 3000.

MoodyBlues

RAS is basically correct. You should also try and get your credit limit for Barclaycard increased.

RAS - if they BT £750 to their Barclaycard they'll go over their limit. Besides Barclaycard also charge a fee (can't remember exactly the % charge on the fee).
I would still balance transfer from Virgin to Barclaycard if I were you Max, but you'll need to work out the details, and not go over your limit (after interest charges and fees etc).

Also does the Citi card allow 6.5% life of the balance transfers? If the APR's higher than Virgin it wont be worth it.

mummy2mygirls

As for the loan it might be worth giving them a call - we have a loan with ge money and dh phoned to ask for a figure to settle it there and then as he said he was getting a different loan with lower amount and they then said they would lower there rate from 17% down to 12.9%...not much but helped....and not sure why they did it and some wont...