Loan advice

michael1983l

beth58 wrote: »

My advice would be under no circumstances take out another loan to pay off a loan, you'd end up paying more interest than what you have left to pay provident. Talk to the company and ask for your account to be frozen and reduce payments, you'll never rebuild your credit by this method just get into a bigger struggle with debt.

I don't think this is the case, his provident loan is over 100% APR, if he takes out a new loan to cover this, he could pay the provident one off, pay the same monthly and vastly recuce his payment term due to the saved interest. Paying a debt off quicker for less money is ALWAYS a good idea.

tigga_1961

NEVER EVER LOOK AT FLM LOANS [TEXT DELETED BY FORUM TEAM] MISSED PAYMENT [TEXT DELETED BY FORUM TEAM] AND YOUR LIFE WILL BE MISERABLE, YOU WILL HAVE YOU GUARANTOR ON YOUR BACK FOR NOT PAYING AND ITS YOUR GUARANTORS CREDIT HISTORY UP THE SPOUT, APR MAY LOOK OK FOR SUB PRIME [TEXT DELETED BY FORUM TEAM]:eek:,

Cyrix_2

Before you take a loan you need some some information about loaning and the qualification. this site "myloanoption.com" for more tips and information in taking a loan

Jeff_Bridges_hair

michael1983l wrote: »

I don't think this is the case, his provident loan is over 100% APR, if he takes out a new loan to cover this, he could pay the provident one off, pay the same monthly and vastly recuce his payment term due to the saved interest. Paying a debt off quicker for less money is ALWAYS a good idea.

But the Op wants £3K and has terrible credit history and no one will loan him that amount of money at a decent rate of interest and a short period of time so they will end up paying more over the length of the £3K loan - because there is no way they will get anything less then 50% i should think.

Better just to pay as much off the provi as possible and get it cleared as quick as possible.

beth58_2

michael1983l wrote: »

I don't think this is the case, his provident loan is over 100% APR, if he takes out a new loan to cover this, he could pay the provident one off, pay the same monthly and vastly recuce his payment term due to the saved interest. Paying a debt off quicker for less money is ALWAYS a good idea.

Provident loan may be high interest but with a poor credit history (which the OP states) the chances of getting another low interest loan are pretty remote.

It may be a struggle now but taking out another loan will extend the period of financial difficulty. Personally I'd try to struggle with the current debt and pay what I can to pay it off a.s.a.p without taking on more debt.

redpete

Cyrix wrote: »

Before you take a loan you need some some information about loaning and the qualification. this site "myloanoption.com" for more tips and information in taking a loan

Excellent resource (if you trust advice from a 20 yr-old computer science college drop-out based in the Phillipines who has designed a poor quality website with minimal information content).

CHR15

redpete, please don't help him promote his site by quoting his website URL, edit the sitename and report Cyrix' post as :spam:

tigga_1961 wrote: »

NEVER EVER LOOK AT FLM LOANS [TEXT DELETED BY FORUM TEAM] MISSED PAYMENT [TEXT DELETED BY FORUM TEAM] AND YOUR LIFE WILL BE MISERABLE, YOU WILL HAVE YOU GUARANTOR ON YOUR BACK FOR NOT PAYING AND ITS YOUR GUARANTORS CREDIT HISTORY UP THE SPOUT, APR MAY LOOK OK FOR SUB PRIME [TEXT DELETED BY FORUM TEAM]:eek:,

This is precisely why you will not see a post by any responsible poster agreeing with the Guarantor facility.

It staggers me people can abuse the kindness of anyone offering to be a guarantor for the precise reasons you have outlined above.

By missing your payment you have now trashed your guarantors credit rating. What did he/she do to deserve that??

Why didn't you tell the guarantor the SECOND you realised you may not have been able to meet the payment??

If you do find someone kind enough to be a guarantor, ask THEM to take the loan in their own name and give you the cash.

The guarantor will obtain a much better interest rate which would have cost you MUCH less for your loan in the first place.

The guarantor would have been responsible for the payments, the lender knew you were going to stop paying, hence the guarantor requirement. At least your guarantor would have had his/her credit rating intact and simply chase you for the money when you stop.
In FAR too many cases the lender simply ignores the friend and refuses to pay. At least his/her credit rating is okay though.

I suspect if most people who offered to be a guarantor were asked this question they would say no. This shows they do not understand what they are letting themselves in for.

I am not at all surprised your guarantor is on your back, I would be too. You have destroyed his/her chances of obtaining credit for themselves for the next 6yrs.

Jeff_Bridges_hair

Agree with you CHR15 but i dont think he mentioned using a guarantor.. This is the worst thing anyoen can do.

CHR15

Yeh! I read between the lines with the cApS useage looks like Tigga has some first hand knowledge.

Apologies if i misread

screwyrabbit

But the Op wants £3K and has terrible credit history and no one will loan him that amount of money at a decent rate of interest and a short period of time so they will end up paying more over the length of the £3K loan - because there is no way they will get anything less then 50% i should think.

Better just to pay as much off the provi as possible and get it cleared as quick as possible.



Hey all thanks for all the advice. Just to clarify things; if I have a credit rating that experian rate as fair and in the words of credit expert is "the national average" is that still deemed as terrible considering I have not missed a payment of any kind in the past three years. The purpose of my loan is to pay off my provident loan with a loan of LOWER interest thus paying the total loan off much faster, and paying back less. On this website, Martin Lewis recomends that people shift their debt in some cases so that they pay less interest. Why is it wrong for me to do the same. Also I am paying a daily interest rate of 133%, if I could get a loan less than that, surely thats better.