loans nightemare!!!

mollyjump

Hi, hope someone can help. We need to cut down our outgoings drastically, and these loan repayments are just holding us back. We have 2 loans, one cost around £170 a month with 2 years remaining, and 1 around £150 a month with 2 and a 1/2 years remaining. What would you do? Combined it's around 5000 we owe. it's not so much the loan, we just need to get monthly payments right down. Any suggestions? thanks

somethingcorporate

What rates are the loans?

fredtheguava

Can you post a SOA? The link is around here somewhere,mi just can't seem to lay my hands on it right now. Then the more experienced money savers will really be able to pinpoint the areas that you could cut down.

YorkshireBoy

mollyjump wrote: »

Any suggestions?

Shifting it to a credit card may be an option, but if there are other 'issues' involved be sure to go into it with eyes wide open!

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

mollyjump

sorry, i don't know offhand the rates (i'm not very savvy with financial stuff, obviously!) one is with natwest and one with lloyds tsb if that's any help?
Thanks for the quick replies!

YorkshireBoy

mollyjump wrote: »

one is with natwest and one with lloyds tsb if that's any help?

None at all!

How much did you borrow?
Over what period?
What are the exact monthly payments?

mollyjump

5000 over 4 years repayment 162.95
3283.13 remaining (2 years left to pay)

6000 over 5 years repayment 148.00 2.5 years left to pay ( sorry, no more details, partners loan)

malcolmffc

Presumably you got these loans specific, important items? Can you sell what you used to buy them?

YorkshireBoy

Assuming no PPI(?), the the £5K loan is around 24% APR and the £6K loan is around 17% APR.

Neither are good rates, which would indicate your credit rating wasn't the best when you took them out. Would you say it has improved since?

For what specific reason do you "just need to get monthly payments right down"? Job loss? Mounting debts elsewhere?

Tixy

Molly - I would suggest you complete a statement of affairs and post on the debt free wannabe section of the forum.
http://www.makesenseofcards.com/soacalc.html
Debt-Free Wannabe

The posters there might be able to make some suggestions as to how you can reduce outgoings / get things cheaper / places to try to cut back so that you can afford your loan repayments. If even after that advice you can't afford your essentials and your monthly debt repayments you could either ask one or both loan providers if they will extend the loan so you can reduce repayments (this is likely to involve a new credit seach and quite possibly an increase in APR so you'll be paying a lot more overall), or you could contact one of the debt advice charities for some help and advice.