2 Years into a 25% Annual Interest Rate Loan

Jazzyleech

2013 I took a Cash Loan of £10,000
2015 I am still outstanding £8,202.45
Annual Interest Rate 24.174%
72 month agreement
£264.35 is being direct debited out every month
I have no savings

I have so far repaid £6344.40

Is there a better way to repay this Loan?
without drastically increasing repayments?

CLAPTON

Jazzyleech wrote: »

2013 I took a Cash Loan of £10,000
2015 I am still outstanding £8,202.45
Annual Interest Rate 24.174%
72 month agreement
£264.35 is being direct debited out every month
I have no savings

I have so far repaid £6344.40

Is there a better way to repay this Loan?
without drastically increasing repayments?

refinance to a lower APR depending upon your income etc.
sell whatever you bought with the 10,000

andyfromotley

Hi Jazzy,

ouch thats a high apr.

check here to see if you can get a cheaper loan.

https://www.moneysavingexpert.com/loans/eligibility/

If you are not eligible for anything cheaper then you are going to have to save up and pay that sucker off! Check out the Debt Free Wannabee forum on here for ideas and inspiration!

redux

If you could manage to increase payments by about £58 a month, that would cut a year and over £1250 off the remaining time and cost.

https://www.theguardian.com/money/loan-repayment-calculator-interest-rates

But as above, finding a cheaper loan would be much better.

Make sure there aren't any penalties for paying back early. There ought not to be, but that might still be happening somewhere.

Jazzyleech

Thankyou so far for the advice.

what worries me is that if I continue in the end of the 72 month agreement I would have repaid £19033.20
I will call my bank today to refinance.

The £4546.85 interest I've paid so far... is that of any use for me?

[Deleted User]

What do you mean, of any use to you?

Paying the interest has stopped you going into arrears, which is a very good thing. But you don't get it back, if that's what you mean.

DCFC79

You say you took out a cash loan, what do you mean by this ?

Caz3121

Jazzyleech wrote: »

what worries me is that if I continue in the end of the 72 month agreement I would have repaid £19033.20

Did you not realise that when you took the loan? (a simple calculation of monthly payment x months would have shown you that)
out of interest, was whatever you needed £10k for, worth paying £19k for?

andyfromotley

dont ring your bank to refinance just yet. Use the link i gave you, this will give you the best rate that you are likely to get. Your bank is unlikely to be as competitive.

Approach your bank if you can't get a loan elsewhere,

Clive_Woody

Jazzyleech wrote: »

Thankyou so far for the advice.

what worries me is that if I continue in the end of the 72 month agreement I would have repaid £19033.20
I will call my bank today to refinance.

The £4546.85 interest I've paid so far... is that of any use for me?

I would be surprised if your own bank offered to refinance at a better rate. Why would they, you agreed to this loan and have been making payments on time?

You highest chance of success is looking for a new lender, but that will depend on your circumstances (earnings, other debts, etc)/