Need help changing my loan

gingabyte

Hi everyone,

I current have a £6000 loan which I took out to pay for a new car. It has a very high interest rate at 26% but at the time of taking the loan out I was suffering from depression etc and my words at the time were 'I couldn't care less' (Mistake I know) My credit score was low at the time because I had missed a few payments, not from lack of funds but from not having the will to pay them.

Its 6 months down the line and I want to change the loan to one that is cheaper. The original loan was over 5 years but I want to change it to a 2 year loan. The problem is my credit score is only fair now and im still getting interest rates given of about 24%.

My question is, do you think I should get the 24% loan, as although its still high, the fact that its a shorter loan will save me lots of money. Or should I do something else?

Thanks

Tixy

Does the current loan allow overpayments?

gingabyte

Thanks for the reply Tixy. I hadn't thought about that one, I guess I will give them a call and ask.

blacksta

Overpay so fast - like there is no tomorrow - Loans for Car especially with your APR with front loaded Interests are bondages

gingabyte

I haven't had a chance to ring them yet as I don't have a signal but from looking at other posts, it seems like barclayloans don't allow this any more

CLAPTON

gingabyte wrote: »

I haven't had a chance to ring them yet as I don't have a signal but from looking at other posts, it seems like barclayloans don't allow this any more

all personal loans taken out after Jan 2011 allow early settlement and overpayments.. it's the law.
but I don't know about your loan as there was no mandatory requirement to allow overpaying prior to Jan.

blacksta

You might be correct - but ring to confirm, if you cant overpay. How much is the car worth -can you sell and add money to it to pay off the loan. Apr is just to hefty and i am very sure in another two years you will be bored of the car talkless of hanging on to the car for another 5 years.

donnap83

You can make over payments to a Barclaysloan. I took one out a few months ago. I was orginally going to overpay mine to clear it faster, but we decided to set a date for our wedding for next year, so I just pay the set amount. Mines fairly low APR and only over 2 years so i can't complain. I may end up borrowing a little more right before the wedding, depending on how much we have saved.