Sorry new to this, can someone help me, please

dinerodinero

Hi,

I have got a loan with Halifax.
I started on the 25th of April 2009 for 74 months and an annual rate of 8.44%. The amount of credit that I borrow is £11,098, now I owe them £10,137.49 and that figure will be until the 29th of this month.
Every month I pay £197.98 and the interest each month change from 75.75 to 69.51 sometimes.

I would like to reduce the interest that I am paying monthly and also the duration of teh agreement. Do you think will it be a good idea and what banks are offering good deals?

Thank you very much

Tubbss

Hi,

Your loan incurs interest on a monthly basis so as the balance decreases, so does the amount of interest that gets added. In order to reduce the interest that you will pay you could (if the terms of your loan allow) increase your payments to pay the loan off quicker. As for your interest rate, 8.44% APR is a good ratre and you may struggle to find one that id better.

In my opinion, chuck as much on the loan each month as you can!

dblue75

At the rate of 8.44% you will really struggle to beat that in these times !!!

As previous post said..good information..IF the terms allow you ??? Rattle as much at it as you can. Therefore APR reduces drastically.

I've done that with previous loans...then went for an early settlement figure and it can save you an awful lot of money.

For instance i've just done it with one I had and saved myself over £900 on my loan.

dinerodinero

Thank you very much for the information, I will try to pay more monthly so hopefully the interest will go down.

Once again, thank you very much, it is really appreciate it.