Help! loan to consolidate another

damnmad

Hi all

All I'm looking for is some advice how to reduce paying my hard earned money to these lenders for nothing! (I mean't to say little less interest, not 40% interest)

I took a personal loan for personal reasons back in May!

Its for £20000 with Barclays, repaying £750 every month , sums up to paying £7000 as interest over the 3 years (which I believe too much, comparing with some of my friends and the interest rate they advertised).

I'm looking for a loan with less interest rate to consolidate that Barclays Loan (paid roughly £4500 in 6 months but my balance is still £17400 ) .

After reading some posts here, felt like getting a second loan is not that easy!!!

I earn £36000 PA with full time job
Credit cards : 3 (available credit - £7750, used up to £600 max and paid back by end of month)
Current Accounts : 2 (overdraft was £3500 available but I've reduced to £650 using some advice from Barclays support- but never used a penny from past 5-6 years )
Savings : roughly £2000
Credit Rating - Experian (970 points) - I know it doesn't matter much but just saying!

Never missed any payments or any other issues on my Credit file (Electoral roll also exists).

Any Suggestions are welcome please

TadleyBaggie

It's not going to happen, lenders will see that you have (at least) over £17K of debt and that you want to take out another 18K or so. This is roughly how much you earn before tax, borrowing up to 50% of your annual income is the max that most mainstream lenders will go to. The fact you want to replace one loan with another makes no difference, as it's quite possible that you will not actually pay off the first loan regardless what you say.

Oh...and try posting without all those annoying emojis.

leespot

You're not technically paying them back high interest for nothing....you needed a loan and they gave you one. The reason you're paying back so much interest is because for some reason they identify you had a higher risk borrower. What is your APR?

AnotherJoe

damnmad wrote: »

Hi all

All I'm looking for is some advice how to reduce paying my hard earned money to these lenders for nothing! Its not "for nothing" its for the risk they are taking with someone who it seems is prone to taking out loans the size of the net income like confetti.

I took a personal loan for personal reasons back in May! What other reasons would there be?


Its for £20000 with Barclays, repaying £750 every month , sums up to paying £7000 as interest over the 3 years (which I believe too much, comparing with some of my friends and the interest rate they advertised). So why did you freely agree to it??????

I'm looking for a loan with less interest rate to consolidate that Barclays Loan (paid roughly £4500 in 6 months but my balance is still £17400 Why didnt you take such a loan out in the first place? Anyway with one big loan (equal probably to your take home salary, plus living in a constant overdraft, a second loan would be a massive red flag to any lendera nd ths very risky = very high rate

After reading some posts here, felt like getting a second loan is not that easy!!! For the reasons above.



Credit Rating - Experian (970 points) - I know it doesn't matter much but just saying!
It doesnt matter.

Never missed any payments or any other issues on my Credit file (Electoral roll also exists).

Any Suggestions are welcome please

Overpay the loan.

damnmad

TadleyBaggie wrote: »

It's not going to happen, lenders will see that you have (at least) over £17K of debt and that you want to take out another 18K or so. This is roughly how much you earn before tax, borrowing up to 50% of your annual income is the max that most mainstream lenders will go to. The fact you want to replace one loan with another makes no difference, as it's quite possible that you will not actually pay off the first loan regardless what you say.

Oh...and try posting without all those annoying emojis.

Thanks for your quick reply,

I understand the point you are trying to say! It does make sense. Hope Barclays offer another loan to consolidate the current loan with lower interest!

Does having more credit cards (unused but not in Credit) impact their decision? (guy from Barclays mentioned this!!)

BTW I've removed those annoying icons (sorry about that)

damnmad

leespot wrote: »

You're not technically paying them back high interest for nothing....you needed a loan and they gave you one.

What I meant to say is that some other lenders were offering for less rate (from adverts, haven't made any applications)

The reason you're paying back so much interest is because for some reason they identify you had a higher risk borrower. What is your APR?

It was my mistake for not looking into other options, not sure how I'm a high risk borrower, My APR is 22.9

Thanks for your reply

ReadingTim

damnmad wrote: »

Thanks for your quick reply,

I understand the point you are trying to say! It does make sense. Hope Barclays offer another loan to consolidate the current loan with lower interest! why on earth would they do that? If they're currently making 23% apr, why would they reduce the profit they're making from you? Banks exist to make profit for their shareholders after all

Does having more credit cards (unused but not in Credit) impact their decision? (guy from Barclays mentioned this!!) yes - they're looking at the total amount of credit you have available to you - the fact that you haven't spend it (yet) is less relevant

Consolidation isn't the answer - you're unlikely to get it, and even if you were, what's changed in your financial circumstances that would warrant a significant reduction in the rate you'd be offered? I seriously doubt whether you'd get a significantly different result even if you had shopped around.

Suggest you close one of the credit cards (keep the others for emergencies), use savings to overpay the credit cards (unless you're clearing the balance in full every month) then overpay as much of the personal loan as you can every month without incurring penalties. Bear in mind that in the early stages of any loan, the majority of the repayments are interest, so don't be too discouraged.

damnmad

AnotherJoe wrote: »

Hi all

All I'm looking for is some advice how to reduce paying my hard earned money to these lenders for nothing!

Its not "for nothing" its for the risk they are taking with someone who it seems is prone to taking out loans the size of the net income like confetti.
Yeah, I know that, but what I mean't to say is lower my interest rates, I don't want it for free, nothing's free i know, but a lower APR would be better

I took a personal loan for personal reasons back in May!

What other reasons would there be?
took it to help my brother and father for an investment

Its for £20000 with Barclays, repaying £750 every month , sums up to paying £7000 as interest over the 3 years (which I believe too much, comparing with some of my friends and the interest rate they advertised).

So why did you freely agree to it??????
by the time while I was applying Barclays rep told me that they've reduced the interest rate after 6 moths review for some customers, so I felt like I can get a loan and then try to reduce the APR later like others, after 6 months time went to them and asked about reducing interest rates, been told that need to take another loan (when it appears under my account, with lower interest) to consolidate this loan, which will never happen because it will be always greater than my take home salary!!

I'm looking for a loan with less interest rate to consolidate that Barclays Loan (paid roughly £4500 in 6 months but my balance is still £17400

Why didnt you take such a loan out in the first place? Anyway with one big loan (equal probably to your take home salary, plus living in a constant overdraft, a second loan would be a massive red flag to any lendera nd ths very risky = very high rate
took it to lend a hand to my family (brother and father) for an investment, only credit I owe is £17400, haven't used any over draft in my life for once!! yeah from listening to different people it seems to be a wrong step I've taken in the first place, I should've gone for a lower amount, but anyway **it happens!!!

After reading some posts here, felt like getting a second loan is not that easy!!! For the reasons above.

Credit Rating - Experian (970 points) - I know it doesn't matter much but just saying!
It doesnt matter.
yeah, true that

Never missed any payments or any other issues on my Credit file (Electoral roll also exists).

Any Suggestions are welcome please
Originally posted by damnmad

Overpay the loan.

Thanks for your reply, hope some magic happens

damnmad

ReadingTim wrote: »

Consolidation isn't the answer - you're unlikely to get it, and even if you were, what's changed in your financial circumstances that would warrant a significant reduction in the rate you'd be offered? I seriously doubt whether you'd get a significantly different result even if you had shopped around.

Yep, I totally agree with what you've said, why would a bank try to reduce their earnings!! there should be a ground breaking changes to my situation to reduce the interest which are unlikely to happen anyway!!


Suggest you close one of the credit cards (keep the others for emergencies), use savings to overpay the credit cards (unless you're clearing the balance in full every month) then overpay as much of the personal loan as you can every month without incurring penalties. Bear in mind that in the early stages of any loan, the majority of the repayments are interest, so don't be too discouraged.

Sure, I'll try to close or reduce the limit to very minimal on the remaining cards or atleast use them once in a while for bits an pieces? (does it helps??) i don't have any balances to pay apart from this loan

Thank you so much for your reply

leespot

Did you borrow the whole amount to fund your father and brothers investment?

damnmad

Yes, absolutely