best way to pay off a loan?

jut69

Hi everyone,
im new to this but would like to get to know it better as it seems really handy.ive been reading some articles and comments and would like some help please.my girlfriend took out an £8000 loan a few years ago and has been paying it off £100 a month,she recently told me her new figures.....she has got £7333 to pay after paying £100 p/m for 2 years!!i couldnt believe it.please could anyone let me know the best way to pay it off without paying too much interest,i looked at the credit card loans with the egg card but is that the best way?thanks for any help i receive,justin

CLAPTON

could you add a bit more information:

what is the APR
how long is the loan for
did she take out PPI with the loan and if so how much?

what does her credit file say?
how much does she earn
does she rent or buying

jut69

the apr is 6.9%, i have found a different loan she could get which is 6.2% though if she changes it over.its a 6 year loan but she can pay it off whenever she likes.she rents. she currently pays £100 per month but will change it to £200.she earns roughly£1000 take home but is pregnant now and has to cut down her shifts so will be earning less soon.she said her credit is good.hope this helps you (well....helps you help me!)

jut69

forgot to say about the loan protection,she said she thinks it about £24 a month

CLAPTON

The figures can't be correct.
£100 per month for six year (72 months ) only comes to 7200 which isn't even the amount borrowed let alone the interest.. can you recheck the figures

jut69

apparently she paid £150 not £100 a month sorry.

CLAPTON

I would assume that the reason for the high figure is that they have added the PPI on as a lump sum at the beginning of the loan (single premium policy). bad news.

Whatever she now does tell her NOT to take PPI on any new loan. If she really feels she needs this type of insurance then get it independently of the loan company ...its an absolute rip off.

jut69

so what would you suggest is the best way to pay off the loan without her being ripped off?

jonesMUFCforever

bassface73 wrote: »

I would suggest re-financing the debt as the interest must be pretty high! I would look at this information, to figure out something.

The loan is charged at 6.9% In today's markey that is a pretty good rate.
Unless her credit rating is A1 I don't think she will get a cheaper deal.

jonesMUFCforever

bassface73 wrote: »

I would suggest re-financing the debt as the interest must be pretty high! I would look at this information, to figure out something.

The information is to Payday loans.
Thanks SPAMMER!

You have been reported.