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Personal Loan
Arthur2015
Posts: 1 Newbie
in Loans
I took out a personal loan for 6000 and I really don't understand how loans work. I accepted the loan and the total amount repayable is 8,485.80, that's 2,485.80 interest at 13.81% over a 36month period, seems a lot. From what I've read it looks like I've taken out a flat interest rate loan? Don't know how as this isn't what I applied for?
However I now want to borrow £5000. So want a loan that will settle my current loan and get the £5000 I need... How do I find the right/cheapest loan as I already feel like I've been a bit cheated with my current loan.. Or haven't I?
However I now want to borrow £5000. So want a loan that will settle my current loan and get the £5000 I need... How do I find the right/cheapest loan as I already feel like I've been a bit cheated with my current loan.. Or haven't I?
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Most loans are fixed rate. Variable rate loans mean that the interest rate can change throughout the life of the loan. Unless you specifically looked for a variable rate loan you'd expect it to be fixed rate.
I don't really think you've been cheated. You could have chosen not to take it.
If you already have a debt of £6,000 and want to settle this AND have £5,000 then you're looking to borrow £11,000. Problem is, lenders won't trust that you'll use the new loan to settle the old one, and they'll assess you as having £17,000 of debt.
Talk to your bank. They know you best. But if your first loan was over 13%, then you're going to struggle to get another one at a lower interest rate than that. You might have more luck applying for the £6,000 as a separate loan."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
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Ach that's what I meant. Edited. Thanks!TadleyBaggie wrote: ».
FTFY
As previous poster, you'l struggle to get another loan unless you earn 35K or more.
EDIT: In that case OP, my first paragraph may not be wholly relevant to what you're on about. The rest of it still stands, though."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
6000 > 8485.80 over 36 mths is an APR of 27%, not exactly prime territory.0
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When you took the loan out you knew how much a month you would pay and how much in total over the 3 years - that is what is happening so I don't see how you were cheated. It is a high interest rate but presumably you compared with others that you might have been able to get and this was the cheapest?Arthur2015 wrote: »How do I find the right/cheapest loan as I already feel like I've been a bit cheated with my current loan.. Or haven't I?
Unless you now earn more that when you applied for the first loan you are less likely to get a further loan any cheaper if at all.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
Yes you were cheated, you asked for a 6k loan and they gave you it, how dare they cheat you like that. Rogues all of them, how dare they make a profit from you, cheats the lot of them.
Don't worry though they will see the light, this time when you ask them for 11k they will say no, that will show them.0 -
Arthur2015 wrote: »I took out a personal loan for 6000 and I really don't understand how loans work. I accepted the loan and the total amount repayable is 8,485.80, that's 2,485.80 interest at 13.81% over a 36month period, seems a lot. From what I've read it looks like I've taken out a flat interest rate loan? Don't know how as this isn't what I applied for?
However I now want to borrow £5000. So want a loan that will settle my current loan and get the £5000 I need... How do I find the right/cheapest loan as I already feel like I've been a bit cheated with my current loan.. Or haven't I?
:rotfl:
Did you try applying for a loan via your bank first and they rejected you or did you purposely use a subprime lender because your credit history is poor?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
I got a 6k loan in April on 13.1% and I only pay 900 back in interest.. Are you sure that was the rate you accepted?0
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sxcizme3010 wrote: »I got a 6k loan in April on 13.1% and I only pay 900 back in interest.. Are you sure that was the rate you accepted?
Obviously it'll depend on the term of the loan. The longer you take the loan over, the more interest you'll pay.0 -
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