'Help! I'm paying £76,000 interest on a £20,000 loan' blog discussion

hayleythedaisy

Try to cut back on everything else to pay it off.

Or emigrate without telling the loan company?

Happytogetdebtfree

I dont have to find more income.... i have lived frugally since my lbm and am attempting to save and pay off debts as i accumulate enough for each section... in regards to the recession eventually something will give and companies and debt companies will have to be abit more realistic with people if they want the cash back ....

dotstar24

Smallfries wrote: »

i reckon its Welcome Finance..... just a guess

first thing that came to my mind was welcome...vultures

The_Hill

marclandsman wrote: »

I agree that this is an absolutely horrendous rate of interest.

This is the first time I have ever seen you suggest an IVA, and must stress caution. An IVA will only 'deal' with unsecured debts. The circumstances suggest that the debt is secured (albeit possibly not fully). This means that any element of the loan which THE FINANCE COMPANY considers secured will carry on. They therefore have the choice to value the security low (ie most of the loan will carry on for the rest of the 20 years) or high (in which case they may be able to take part in the IVA, but reject it if they wanted to).

There may also be an insolvency clause in the agreement which makes everything payable if they propose IVAs.

Bottom line is READ THE AGREEMENT before they take any action as it it could be very expensive not to do so. Of course, even if there is a penalty for early repayment it may be worth biting the bullet as it may be cheaper in the long run.

Marc

ps: why don't people read agreements before signing them, and why don't companies make them easier to read? How about suggesting using financial agreements in schools as part of English Comprehension lessons?

Panic followed by Desperation Marc, thats all.

verystupidwithmoney

grandma247 wrote: »

What a good idea!



If all else fails you could live on rice and beans for a time or use the suggestions on this site http://www.cheap-family-recipes.org.uk/ to cut your grocery bill to the bone so you can pay off more.

That's a great site! Bookmarked :j