Advice please re Cahoot loan...

seb1982

Hi all

I’m looking for your advice please and would be really grateful if someone could help me out.

I currently owe 6,500 to Cahoot, I have a flexible loan with them and my rate has just increased to 9.1%. Presumably I would be better off paying this off now than paying them off for the 12 months. Only thing being I obviously don’t have the money to pay this off now out of my own pocket so if I was for example to be able to get a Nationwide loan for 6.4% (which I should be able to do as I have a good credit rating) for one year would I be financially better off.

Please please please offer any advise that you have. Your time is much appreciated.

enjoyincubus

It all depends upon how long it would take to have the money to pay it off, and personal choice really.

I too have a cahoot account and they also increased the APR up to 9.1% (it jumped from 8.1% - a 1% increase, which seemed a bit strange as their excuse was because of the Bank of England 0.25% increase in interest rates...). However I plan to get an AA loan in a couple of weeks to pay that off and another loan I have.

But in your circumstances you will only be looking at a difference of about £15 a month if you change to the lower APR loan. So if you plan to have the money in a month anyway, I would just leave it, its probably not worth the effort to save £15. However if you plan to take a couple of months then it would be better to change to a lower APR loan. For example the AA are offering 5.8% for £6,500 over 12 months - and you would also get a three month payment holiday at the start if you needed it. But if you plan to pay it off early you will be charged two months interest.

P.S That £15 is not accucurate, I just multiplied the difference in APR by the loan amount (£6,500x2.7%). Which would be £15 a month...

lynzpower

I cant see where the OP said he is going to have the full money in a month?

Cahoot have rules of thier own. My Ohs started low and is jumping up pretty mucyh month on month. Have a search of this forum, plenty of us are trying to get out of them.
Id get out of this as a matter of pririty, before you get hit with the 12. whatever my OH currently is lumbered with.

seb1982

Thank you for your advice. I wouldn't have the money in one month, it would take me 12 months to repay the amount I owe. I have found that Barclaycard is currently doing a loan for 5.7% so I have requested that Cahoot send me my settlement figure in the post. Fingers crossed Barclaycard will accept me for their loan (i think i have a good credit rating so they should do). Cahoots rates have gone up so much since i started my loan with them, only wish i'd have thought to do this sooner. Thank you again for your help.

teabelly

I've just paid my cahoot loan off as I switched mortgage to a one account. I started with cahoot in April of this year. Within 2 months they had whacked the interest rate from a good 5.8% to an outrageous 8%. They put it up again at the end of August. It is just profiteering. I shall be closing the facility and telling them exactly why. It is basically the good old bait and switch - offer someone a good deal then remove it from them as soon as you dare.