I want to get rid of my secured loan

worriest

Hi as the title says i have a secured loan of £12,000 from blackhorse at the whopping rate of 13.3%, which we pay £183 per month to i would like to get rid asap and was hoping for some advice x
we have had our loan for only 18 months and it is over 10 years
Monthly income
H's 1425
Me 215
Pensions 294
Child benefit 113

Monthly outgoing
Mortgage £511
Loan £183
Council tax £120
Electric £160
car ins £26
Home ins £19
Phone £30
BB £15
Sky £20
Petrol/travelling £200
Food £200
Hosing benefit overpayment(from years ago) £50

I was very upset to have £100 arrested from my bank account by the council collecters for a housing benefit overpayment from 5 years ago, and this has made me realise i have to make the most of my finances, any help woul be greatly appreciated

tyllwyd

I've added up your income as £2047 and your outgoings (including loan) as £1534. You've missed a few things out from your SOA, like tv licence, saving for car repairs/MOT, saving for Christmas, (and your electricity bill is sky high) but on the figures you've posted you have got a few hundred pounds that you could potentially overpay on your loan.

What kind of advice are you after? Does your loan allow overpayments? Does it include PPI?

lynzpower

in terms of your secured loan

have you looked at your policy. Many have MASSIVE penalties for overpaying/ getting rid of early. You need to know whether its "worth" you paying it off early or you get stung massively for trying to get out of debt

worriest

Hi my tv licence is £11 per month, we do not have central heating so all our heating, electric etc is on a prepayment meter which is a lot more because of winter and tumble drying kids clothes. and storage heaters cost a fortune to run.
We dont have any savings so i was wondering if im better just trying to save at least £400 per month rather than making overpayments on my loan as i dont really understand how they work.
The loan doesnt include PPI as i refused.
I am currently looking at life insurance and reciving quotes but am also baffled by that, my husband blees him leaves everything to me as he works long hours!
I dont know what the early repayment charges would be but im sure they would be huge, im not even sure what advice i need i just wish we had never took that loan out, the only bonus is we have learnt our lesson and have not got ourselves into anymore debt!
thanks for replying

worriest

Sorry forgot to add things like christmas and car mots we just hope for the best which isnt the best way to do it but that is why i would like to start saving, im not very good at it so need some willpower lol

jenchin66

Have you claimed Child tax credits

vivaladiva

lynzpower wrote:

in terms of your secured loan

have you looked at your policy. Many have MASSIVE penalties for overpaying/ getting rid of early. You need to know whether its "worth" you paying it off early or you get stung massively for trying to get out of debt

Yes, do check this. I did and found out I owe about as much as I did when I took out the laod 2 years ago.:mad:
If only I'd been here first.:rolleyes:

worriest

Hi we did get £10 per week tax credits until they decided we owed them £1500 from years before so we wont be gettin them again for a long time.
I wish i did not take the secured loan out and want rid but understand that i cant afford to i know we can make the payments but i feel like its a huge weight at the moment!
We were stupid to take it out but lesson learned i suppose

worriest

Hi i just wondered to add to my first post if anyone has experience of Black Horse and maybe even their secured loans?
I know to pay it off early would be impossible unless i win the lottery but it would be nice to hear of someone eho has managed to
Thanks

CLAPTON

you need to find out (either ask them or read the T&Cs or both) whether you can overpay (i.e. pay more each month than the contracted amount) and does this reduce the overall interest paid.

and what is the settlement figure if you wanted to pay the whole loan off now.

until you know this its not really possible to see whether it worthwhile paying the loan off early.

Once you know the above then you can look at alteratives....which are only

a. refinance all or part of the the loan by getting another loan at a lower APR....that depends upon your credit rating and may not be possible. possible approaches here include low LOB CCs as well as loans

b. simply save as much as possible in the best high interest saving a/c until you have enough to pay the loan off.