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my mind and money!! - what next?
Comments
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Loans often aren't worth repaying early unless you give a F&F (full and final) settlement but this will affect your credit rating.
Paying off a loan early affects your credit rating? I had no idea...I thought I was doing the right thing a few months ago using my savings to pay off my loan - but if it affected my credit rating that's probably why I got turned down for a cash back credit card with capital one recently! (I'm a saver now I'm not in debt anymore :j ) I couldn't think why I'd been turned down; guess now I know.0 -
eek!!.,. paying of loans early effects your credit rating?.. So is this really best to keep them?AA Loan -left £6657 -ends Nov 2009 / £243.93pm
GE Loan -left £3500 -ends Oct 2008 / £291.34pm
GE Loan -left £7688.99 -ends Nov 2010 / £232.52pm
DL Loan -left £9766.94 -ends Apr 2011 / £222.18
Natwest CC -left £2100 - N/A % paying £60pm
Total saved to pay loans off = £8000 -
I don't think paying off early affects your credit rating. I've done it several times and my credit rating mysteriously seems to remain good.
I'm just in the process of taking out a loan at 6.5% to pay off the one I currently have at 7.8%. My advice - but I'm not an expert - would be that if you can get another loan at lower interest and pay off the 12% one, then do it. But don't extend the term or you will end up paying more interest over time.Total debt: 1 January 2007 £[strike]49,387.79[/strike] 1 January 2012 £[STRIKE]19,312.85[/STRIKE] 1 August 2012 £11,517.620 -
Yeah, i have thought about it, and will apply for a lower rate loan over the same period of whats left on the exsisting one which is 3 years.
It works out that i save around £20 pm, so it must be worth it.AA Loan -left £6657 -ends Nov 2009 / £243.93pm
GE Loan -left £3500 -ends Oct 2008 / £291.34pm
GE Loan -left £7688.99 -ends Nov 2010 / £232.52pm
DL Loan -left £9766.94 -ends Apr 2011 / £222.18
Natwest CC -left £2100 - N/A % paying £60pm
Total saved to pay loans off = £8000 -
How about asking friends and family to not buy you a prezzie this year and you do the same for them. Or set a max limit that person (it can be fun humting for small prezzies which mean a lot). Or gifts in kind eg an IOU for a few hours dog walking or baby sitting. If someone showed me how to cook I think that would be great!Find out who you are and do that on purpose (thanks to Owain Wyn Jones quoting Dolly Parton)0
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Thats exaclty what we have done. Decided not to buy pressies this year to save.
Also, we decided not to buy any pressies for our daughter who is 14 months, as 1. she dont really know whats going on, and 2. she got more presents at 6 months old than i did from grandparents etc etc. So she will still get spoiled.
Wish i was young again, i used to love getting loads of presents!!.. :jAA Loan -left £6657 -ends Nov 2009 / £243.93pm
GE Loan -left £3500 -ends Oct 2008 / £291.34pm
GE Loan -left £7688.99 -ends Nov 2010 / £232.52pm
DL Loan -left £9766.94 -ends Apr 2011 / £222.18
Natwest CC -left £2100 - N/A % paying £60pm
Total saved to pay loans off = £8000
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