loan payment help needed!!

lozloz85

just wondering if anyone has any advice, i took a guarantor loan out 29/10/12 it was a £400 loan with quick cash club, i have paid £60-65 every month since and paid to date £1,270 and my balance with them is £353.91 im struggling every month to pay them they take 1% of the balance and the rest interest but i cant afford a lump sum is there anyway out of this i have paid this loan back 3 times over already.

Tixy

What were the original terms of the loan? interest rate? monthly payments and term?

You say you cannot afford a lump sum. If you continue to pay the monthly payments how long until the loan would be repaid?

As this is a guarantor loan if you are unable to keep up with payments then you guarantor will be required to pay. Is your guarantor aware you are struggling?

Is your guarantor in a position and willing to pay off the amount in full and you then repay them over the next few months at a cheaper interest rate?

Gaz83

There must be some information missing from the OP. Missed payments or something like that.

lozloz85

Gaz83 wrote: »

There must be some information missing from the OP. Missed payments or something like that.

no, no missed payments, i cant miss a payment as its guarantor if i dont do guarantor is expected to pay it they take 1% of the balance every month

Tixy

So if the original agreement states you were to repay 1% every month (plus interest) then presumably you were expecting the loan to take 100 months to repay? i.e that it would not be fully repaid in 2021?

That is an inceredibly long term for a small loan.

What is the APR on the loan?

lozloz85

Tixy wrote: »

What were the original terms of the loan? interest rate? monthly payments and term?

You say you cannot afford a lump sum. If you continue to pay the monthly payments how long until the loan would be repaid?

As this is a guarantor loan if you are unable to keep up with payments then you guarantor will be required to pay. Is your guarantor aware you are struggling?

Is your guarantor in a position and willing to pay off the amount in full and you then repay them over the next few months at a cheaper interest rate?

guarantor is in no position to help unfortunately, i did try step change but there solution was just dont pay it guarantor will have to which im not prepared to do, im looking at continuing payments for a good few years yet at this rate monthly payments change so as balance goes down the interest drops slightly and my payments go down in 18 months they have come down by around £5 the interest rate according to their site is 140% they have no set repayment period they just keep taking until balance clear

Tixy

Presumably you have problems on your credit file that means you are unable to borrow money from any other commerical lender to pay off this loan?

It may be worth considering your local credit union.
With most credit unions you have to start saving first before you can borrow from them, however some will allow people to take out loans almost straight away if they are struggling paying back payday loans/very high interest loans.
Credit unions generally lend to people based on their ability to repay rather than what is on their credit file.

Alternatively it might be worth you posting on the debt free wannabe section of the forum and posting up a statement of affairs showing your income/outgoings and debt repayments. People on there may be able to suggest ways in which you could make changes to your finances so you could better afford repayments or so you can afford to save some money each month towards a lump sum to repay the debt.

Do you have any things you could sell to help raise some funds? is there any way you can increase your income?

Gaz83

lozloz85 wrote: »

no, no missed payments, i cant miss a payment as its guarantor if i dont do guarantor is expected to pay it they take 1% of the balance every month

Sorry, but why on earth did you sign up for an agreement to take 100 months to repay a £400 loan? Are you aware you'll be paying £6,500 in total to borrow £400, if what you're saying is true?

lozloz85

Gaz83 wrote: »

Sorry, but why on earth did you sign up for an agreement to take 100 months to repay a £400 loan? Are you aware you'll be paying £6,500 in total to borrow £400, if what you're saying is true?

i called them thismorning for exact amounts and everything it will be under that as payments will go down as the total does but not by much, at the time it was money i needed and they were the only company that would accept me but theres no point me wishing i hadnt taken the loan etc as it does me no good now

lozloz85

Tixy wrote: »

Presumably you have problems on your credit file that means you are unable to borrow money from any other commerical lender to pay off this loan?

It may be worth considering your local credit union.
With most credit unions you have to start saving first before you can borrow from them, however some will allow people to take out loans almost straight away if they are struggling paying back payday loans/very high interest loans.
Credit unions generally lend to people based on their ability to repay rather than what is on their credit file.

Alternatively it might be worth you posting on the debt free wannabe section of the forum and posting up a statement of affairs showing your income/outgoings and debt repayments. People on there may be able to suggest ways in which you could make changes to your finances so you could better afford repayments or so you can afford to save some money each month towards a lump sum to repay the debt.

Do you have any things you could sell to help raise some funds? is there any way you can increase your income?

i was thinking same thing thismorning but only thing i have is my laptop which i use to work and for uni, ive taken a 2nd job but until the dbs check comes through it cant start i cant do much about that it all depends on the dept, im hoping once money from there comes in it will be enough to cover all debts and support my family. i have 13,000 outstanding on my credit file but alot of missed payments from when i was younger so my rating is aweful i did go with a company consolidate the debts except this guarantor one and i was paying 85 a month but only 50 on the debts, if im going to pay that much a month i want it all going on any debts i have. ill look into credit union thankyou, and will take a look on the other forums

Gaz83

Hang on, there's something I've just noticed.

You say that they take 1% of the balance. Is this 1% of the original £400 balance, or 1% of the outstanding balance?

If it's the latter, then the loan will never be paid off.

You need to find your paperwork.