Moving to another loan

Mhuireann

Took out a £3800 loan with RBS in January. Paying over and above the minimum payment ever month but the amount does not seem to get lower:(. Does not help that the interest is 15%. Anyone know a cheaper loan and if I will be able to move to another one after such a short time. Getting married next year so need to do something!

Any tips appreciated.

BLT_2

Mhuireann wrote: »

Took out a £3800 loan with RBS in January. Paying over and above the minimum payment ever month but the amount does not seem to get lower:(. Does not help that the interest is 15%. Anyone know a cheaper loan and if I will be able to move to another one after such a short time. Getting married next year so need to do something!

Any tips appreciated.

An RBS bank loan where you can pay over and above the minimum each month? Are you sure this is not a credit card.

Secondly, if the interest rate is 15% that is roughly standard for a loan of that amount, interest rates of 7-11% are normally only offered on loans of above 7500 to my knowledge

sscott5581

This sounds like a credit card, loans are normally fixed payments.

drbesty

Hopefully anyone who could get £3800 worth of credit would know the difference between a loan and a credit card

BLT_2

drbesty wrote: »

Hopefully anyone who could get £3800 worth of credit would know the difference between a loan and a credit card

You clearly haven,t been reading these boards as much as I have :rotfl:

Mhuireann

Hello,
Yes thanks for the more useful replies.

Yes I do know the difference between a loan and a card!:p
Can anyone answer my post though?

BLT_2

Mhuireann wrote: »

Hello,
Yes thanks for the more useful replies.

Yes I do know the difference between a loan and a card!:p
Can anyone answer my post though?

Its highly unlikely that you are going to get a loan of 3800 below the 15% rate.

redpete

What do the RBS Ts&Cs say about overpayments and early repayment? That should tell you whether you can pay it off early (and whether your overpayments are actually saving you any money or not).

Of course the amount owed will not go down much at first - the payments are mostly interest (depending on the term of the loan).

As to whether you'd be able to get a better loan - possibly not as you will now have £3800 debt on your credit report so it will be mor difficult to get money now than when you got the RBS loan.