Loan

flower00

Hi. Had a bit of a shock today as recieved a phone call from the bank saying that I was over my over draft limit of 3,500 by £15. Scary as I have 3 weeks till pay day, a child to feed and bills to pay! Miss calculated how much money I had left, yes I know, a bit careless and I do have regrets for not been more aware.
A meeting with the bank manager ended with me signing for a £12,500 loan to cover credit card debts and over draft. Now I am scared as the interest is..22%!!!! I think they convinced me no-one else will lend me money and I had no choice. At the time I felt desperate. I am worried if I find a loan cheaper else where it will prove difficult to move to another lender due to the high interest on the loan I took out today. Any tips?:(

InaPickle

flower00 wrote: »

Hi. Had a bit of a shock today as recieved a phone call from the bank saying that I was over my over draft limit of 3,500 by £15. Scary as I have 3 weeks till pay day, a child to feed and bills to pay! Miss calculated how much money I had left, yes I know, a bit careless and I do have regrets for not been more aware.
A meeting with the bank manager ended with me signing for a £12,500 loan to cover credit card debts and over draft. Now I am scared as the interest is..22%!!!! I think they convinced me no-one else will lend me money and I had no choice. At the time I felt desperate. I am worried if I find a loan cheaper else where it will prove difficult to move to another lender due to the high interest on the loan I took out today. Any tips?:(

Hi flower! :wave:

This is not my area of expertise, but I didn't want to read and run.

To other MSErs out there: is there any sort of cooling down period on loan agreements?

And to Flower, even if there is and other people can advise you to get out of the loan, do you have any family you can lend some money from til payday for food, or can you get an advance from work etc. to keep you going?

HTH.

d.green89

That doesn't seem all that bad really, does the loan pay off the credit cards because I bet the interest on them were about the same mark so paying everything off into one lump fixed sum a month is sometimes a good option.

Stop worrying about it Flower

iolanthe07

22% is high, but not quite sub prime. The important thing is not to think that you are out of debt and then start racking it up on those cards again.

CHR15

If you signed during a meeting with the bank manager (in the bank), then there is no cooling off period.

Like others have said, the 22% is high but then we don't know your risk profile. Also the 22% is likely to be much less interest than you were paying on your other commitments.

The important thing is to take the lesson and understand your position (you need to tame those outgoings).

Today is an ideal time to go in the DFW Board and post up your SOA and really start bringing this spending under control.

Hopefully your new loan will mean paying out less each month so open a savings account and start putting some aside for the next rainy day.

Good luck.

zppp

OP, remember that you now have he ability to make overpayments into your loan with the introduction of the Consumer Credit Directive. So, as others have stated if you do an SOA, get all of your income and expenditure looked at, there may be some savings to help you clear off the loan sooner.