loan payment help needed!!

lozloz85

Gaz83 wrote: »

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.

1% of the remainder so when it was 400 they took £4 now its £3.51 when i get down to 100 they will take £1 good way to earn money for them i suppose i have tried to take another loan with a set period and less amount in payments to cover it but im unable to do that either, currently in a right mess lol

Tixy

So are you currently making repayments on the rest of the £13k of debt?

Are you now paying full payments, or have you negotitated lower repayments? or are you still in a DMP for the remainder?

How much are you paying towards your debts in total a month?

Gaz83

lozloz85 wrote: »

1% of the remainder so when it was 400 they took £4 now its £3.51 when i get down to 100 they will take £1 good way to earn money for them i suppose i have tried to take another loan with a set period and less amount in payments to cover it but im unable to do that either, currently in a right mess lol

It simply can't be 1% of the remainder. If it is 1% of the remainder then the loan will never be paid off.

Sell the laptop, use the University computers.

lozloz85

Tixy wrote: »

So are you currently making repayments on the rest of the £13k of debt?

Are you now paying full payments, or have you negotitated lower repayments? or are you still in a DMP for the remainder?

How much are you paying towards your debts in total a month?

i pay around 100 a month off them not including the 60/65 i pay i may have a friend who is willing to clear balance and then i pay her 60 a month till its clear ill find out later so fingers crossed that will save me a few grand! whats a dmp? now i have a second job im hoping to bump payments to 3/400 a month of everything and try get myself out of debt i have an outstanding debt on my file from a catalogue that shouldnt be there as its paid in full and another with a phone company that shouldnt be as high as it is, my credit is an absolute mess, ive opened a new account for money to go into and ill keep my old account for bills hopefully being able to transfer between the 2 will make things a bit easier

Apples2

You must have £350 worth of stuff to get rid of.
Stop thinking of things as being essential.

Laptop for instance, what would happen if you dropped it and broke the screen? You would have to muddle through so sell it now.
Mobile Phone?
Game Console?
DVD's, CD's
Lawn mower?
Coffee Maker?

You are facing a never ending debt all for the sake of £350.

Tixy

A DMP is a debt management plan (like you mentioned paying £85 a month previously). If you do decide this could be an option for you then choose a DMP then use a free provider such as the charities so that all your monthly repayment goes towards the creditors.

If you are currently paying £100 a month and can now afford £300 to £400 a month then I would focus on paying the guarantor loan off first. Then once this is paid, which presumably will be in no more than 2 months you can up your payments to your other creditors.

Tixy

Gaz83 wrote: »

It simply can't be 1% of the remainder. If it is 1% of the remainder then the loan will never be paid off.

Sounds like it is the higher of 1% of the balance or £1.

Pixie5740

Your finances sounds unsustainable since you are regularly needing to borrow and repay money from friends.

If you will have £300/£400 to put towards debt repayment in the near future then you should focus that money on this guarantor loan as it is most likely the most expensive debt you have.

Do you really have the time to work two jobs and study? Would taking a year out from studying be an option so that you can get your finances back on an even keel? The finance department of your student union might also be able to help in terms of advice and possibly have access to a hardship fund that they might be able to grant you some money from.

Pixie5740

Tixy wrote: »

Sounds like it is the higher of 1% of the balance or £1.

Sounds like a very, very expensive way of borrowing £400. I can't believe the guarantor actually read what they were agreeing to.

Gaz83

Pixie5740 wrote: »

Sounds like a very, very expensive way of borrowing £400. I can't believe the guarantor actually read what they were agreeing to.

I still maintain there is missing info here.

I've no idea why folk give only half- or quarter-stories and expect to get full, accurate advice.

I've no idea why anyone, regardless of how poor they are with money, think that signing up to give £65 a month for over 8 years is a sensible way of borrowing £400.