Car insurance 31.8 interest

snakey_2

Hi

have got a friend who taken some car insurance....thing is she is being charged 31.8% interest on top of her premium through the finace company..part of the insurance....now unfortunately for her....the 14 days cancellation period has gone......but I dont how much interest she is paying......would she be better of getting say a 0% credit card and paying the insurance straight off now....or would she still be charged the full amount with interest no matter what?

Thanks for your times...

payless

would depend on the terms of the credit agreement- as to what penalty applies - ask for settlement figure, then number crunch

your suggestion may still be worthwhile, even with a penalty

JasonW_2

That is shocking! Name and shame.

They will probably make it hard to get out of that agreement, as the prospect of all that lovely interest will be too much to let go.

JW

shrek101

wow that's some interest rate.

This annoys me when companies take advantage of peoples circumstances mealy because they cant afford to pay the amount out right. In the case of insurance that's for year but they expect you to cough up at one go or expect you to pay an high interest rate if you don't.

I wonder if its worth contacting the insurance company and ask them rather than pay the insurance by instalments to pay the balance on a credit card assuming you have one with 0% interest free.

Its worth trying anyhow rather than cancelling as most insurance companies penalise you if you cancel early.

Also next time you take out an insurance remember it doesn't pay to be loyal shop around. Check http://www.confused.com/ for quotes saved me quite a bit of money the last 2 years.

I myself used to pay insurance by instalments until very recently, but managed to save enough over the year to pay the insurance outright, not that it was all that high due to no claims and shopping around.

I hope your friend gets sorted.

snakey_2

thanks for your help guys......