Paying off a 0% interest loan

benshort

Hi,

My wife has a loan that she took out before we where together over 10 years ago. The loan is with Barclays. She was struggling to pay it back, lots of other debts and etc, and managed to get them to reduce the payments to £40 a month and 0%. The amount outstanding is £2028 which will take around 4.25 years to pay off. Today they offered to take £1500 to clear the loan.

I have the money to end the loan but I can't decide if it's better to keep paying it off at £40 so I have savings for any emergency's. If its at 0% interest it means that as inflation rises the money owed becomes less, assuming I get inflationary pay rises for the next 4 year.

Also my wife wants to to try and claim the payment protection back on the loan. Can she do that before the loan ends or does it have to be paid off first?

Thanks

DCFC79

She can claim now for the PPI but whether she wins is another matter.

[Deleted User]

if they offered to take £1500 have you tried offering £1000
as i understand it PPI can be reclaimed even after settlement

benshort

Has anyone had success doing that?

forgotmyname

Depends how much they think they will get from you. If they think there is a risk of you not keeping up the payments and them getting nothing they will take much less as a full and final settlement.

Oddly. Sometimes it maybe better to deal with the collection companies rather than the original lender. They will have paid peanuts for the debt and run the risk of getting nothing.

You probably want to avoid that though.

Get her to phone and enquire about the offer, Then in the background you pretend your on the phone to someone and say, Mum said she can raise £1000 if that clears the debt in full. She wont lend it to you if you still have more payments to make though.

Worth a try.