RBS Personal Loan

Moneygrabber

Hi,

Any suggestions would be much appreciated!

I have been a RBS customer for many years. Quite some time ago I (foolishly) took out a loan, cant even remember the amount borrowed. Anyway, as it stands today, I owe £5,950.33p, and I repay it monthly which is £171.38 (have never defaulted). It's like it will never end! Out of the £171.38, between £80 and £89 is deducted in interest out of this, per month.

I would be able to increase my monthly payments to around £250.00 per month.

What would you do? Switch the debt (balance transfer) elsewhere? Contact bank? Just let it carry on forever !

Many thanks, M

_Andy_

What is the current APR?

Moneygrabber

Just dug out the agreement! Says APR is 18.6%.

Thanks

stephane_2

You could try applying for a 0% Credit card which will allow you to transfer fund to your account, but you need to find that from RBS what is the settlement figure for your loan. It might be difficult to find a lender that will give you such a credit limit on a credit card and don't forget that most lenders will not allow you to transfer more that 90% of your available credit.

ste_coxy

That seems really high APR!

Have u considered getting a loan for the amount outstanding at (hopefully) a lower rate elsewhere over a shorter period?

http://www.moneysupermarket.com/loans/ have a look on there for the best deal.

jonesMUFCforever

The APR may be high due to the perceived risk to the lender.
Why not go to the bank and see if they will re-negotiate a new loan for you at a lower rate?

CLAPTON

your haven't said what your credit record says
or you salary
on the electoral roll?

depending upon those 18% may or may not be a bad APR

can you pay more each month and finish the loan more quickly.

Moneygrabber

Thanks to all for your suggestions.

Clapton, yes I could afford to up the repayments from £171. to around £250 per month.

Thanks again, M

CLAPTON

from the info you have supplied then it will take you about 48 months to complete the loan and you will pay abou 2,400 in interest

if you can overpay and so pay 250 then the period of the loan will drop to about 30 months and pay about 1,400 in interest


whether you can get a new loan at lower APR depends upon your credit record and salary

Moneygrabber

Thanks all

Think I will ring the RBS to see if they will re-negotiate the loan at lower interest rate. Been their customer for years, surely they will consider this ! Don't have an overdraft, always in credit - just wished I'd never taken out the loan but was in financial difficulty at that time.

If I get no joy from them, will look at Moneysupermarket and see what happens.

Thanks M

Moneygrabber

Hi All

Ok just phoned RBS re. loan balance of which is £5,950.33. They will not negotiate new loan with lower interest rate, as stated in terms and conds. I think she said. Blinded me with science a bit re. taking loan from another company to pay this off (APR redemption fees ect). Also kept reassuring the interest will go down significantly over time.

Asked what settlement figure would be if I paid it all off today (not than I can!). She said £6,158.72.

Anyway I've decided to up the repayments to £200 per month (from £171.38). I have to go into branch and set up SO for this (£28.62) This means the loan will end 19/12/2012 instead of Jan.2014. So that's good.

Also learned I can phone RBS to randomly pay extra off the loan when I can afford to, which I will do whenever poss.

Am I making right decision here ? It's an improvement anyway.

Many thanks again,
Best wishes M