Help / Advice with ill advised loan

ILW

Get s settlement figure first, then look at was of paying it.

Pheobesmove

I have just found out my gran took out one of these British gas/ ge money loan when she had her boiler replaced in 2007.
She's about to move house so we were looking into how much this was to clear. The paperwork states original loan was £3254 . Apr is something like 18.94% . Total credit over 10 years is £3900 something. I worked out the total amount she would pay them if she let the loan run was just short £7200 plus she had to pay £75 initially to set up the loan!
Her payments are £61.54 a month and the interest each month is in the region of £40.
Couldn't see any mention of PPI .
We rang up today and got a resettlement figure of £2200. So in just under 6 years, she's only paid £1000 off the original loan.
My gran says the British gas recommended this as a great deal to her! Thankfully it's the only debt she has.

malcolmffc

Get a0% card, spend £2000 of what you would normally spend on it and only pay the min payment. Now use the £2000 that should be in your bank account to pay off the loan. Your £2000 debt is now at 0%, not 20 so at £50-60pm you can pay it off in about 3 years (may need to balance transfer to get a new 0% deal midway through)