We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Long Term Loan Repayment
londonmaiden
Posts: 51 Forumite
in Loans
Hello, I would appreciate any advice regarding my situation.
2 years ago I took out a 10k loan with my bank, Abbey, over the longest term which means I am repaying it @ £220 per month until 2016, and will be paying back nearly 16k. This was my only option at the time as apparantely my credit rating was very poor.
I would now like to refinance by taking out a short term loan say over 2/3 years to pay this off, which means I will be paying more per month but luckily I can afford it and I don't want this hanging over my head for another 6 years.
I tried to apply to Abbey again and was refused because of my credit score, I have since got my report from equifax, credit expert etc and can see nothing alarming on there apart from two late loan repayments from 2002, everything else is perfect. This is extremeley frustrating for me and I feel Abbey are refusing me as they can rinse more money out of me, afterall they are getting £6k from me in interest, it is absolutely disgusting.
I am now afraid to go elsewhere in case I get refused again and this will go on my credit report.
Anyone have any ideas/solutions?
Thank you.
2 years ago I took out a 10k loan with my bank, Abbey, over the longest term which means I am repaying it @ £220 per month until 2016, and will be paying back nearly 16k. This was my only option at the time as apparantely my credit rating was very poor.
I would now like to refinance by taking out a short term loan say over 2/3 years to pay this off, which means I will be paying more per month but luckily I can afford it and I don't want this hanging over my head for another 6 years.
I tried to apply to Abbey again and was refused because of my credit score, I have since got my report from equifax, credit expert etc and can see nothing alarming on there apart from two late loan repayments from 2002, everything else is perfect. This is extremeley frustrating for me and I feel Abbey are refusing me as they can rinse more money out of me, afterall they are getting £6k from me in interest, it is absolutely disgusting.
I am now afraid to go elsewhere in case I get refused again and this will go on my credit report.
Anyone have any ideas/solutions?
Thank you.
0
Comments
-
can you not start overpaying the current loan you have?"If you no longer go for a gap, you are no longer a racing driver" - Ayrton Senna0
-
As Jeff Bridges Hair (love the randomness of that username btw!) says you dont have to refinance if you dont want anymore money, just overpay on the loan you already have. Literally phone them up and say you want to increase the amount of your monthly repayments and then work out with them how much, how much quicker you will pay the loan off etc.
My name is Matt, I'm a guy, so if you're a guy please don't try and flirt with me via pm!!!!!!!They can't have what you haven't got can they? tell them that and if they say otherwise pretend to be an owl or something.0 -
Unfortunately I don't have that option, the only option I have is to pay the remainder off in full...0
-
Are you sure about that? Have you called them to dicuss it? I'd be amazed if you can't increase your monthly payment to pay it off earlier. What difference does it make to them? They're still getting their money back, just quicker!
My name is Matt, I'm a guy, so if you're a guy please don't try and flirt with me via pm!!!!!!!They can't have what you haven't got can they? tell them that and if they say otherwise pretend to be an owl or something.0 -
Unfortunately I am, the monthly repayment amount is fixed for the term of the loan.0
-
Wow, thats a sh*t deal then isn't it!
My name is Matt, I'm a guy, so if you're a guy please don't try and flirt with me via pm!!!!!!!They can't have what you haven't got can they? tell them that and if they say otherwise pretend to be an owl or something.0 -
Why don't you try to get a loan with someone else? Or maybe you've already tried that
0 -
Superstylin wrote: »Are you sure about that? Have you called them to dicuss it? I'd be amazed if you can't increase your monthly payment to pay it off earlier. What difference does it make to them? They're still getting their money back, just quicker!
why do you say this?
lots of loans don't allow overpayments0 -
I will wait a while and apply with a different company and see if I have better luck. It is a horrible thought that this money will be coming off my wages each month for the next 6 years, I don't want to even think how old I'll be when it's paid off.0
-
Overpay yourself instead in a high (haha) interest savings account. When the amount of money you have in there is equal to the pay off amount, pay it off early. Bonus: You make the loan a teeny bit cheaper by applying 3% earned interest to your lump sum rather than paying it to the loan company.
Same result, and no credit rating impact.Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
Do something amazing. GIVE BLOOD.0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.4K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards