High interest loan (HELP!!)

Scousesean

Hello everyone, this is my first ever post, I need some help! I took out a loan with my bank a year ago, I had bad credit ratings so I applied to my own bank I had been with for years and done this online. This was before I knew about soft searches for loans and credit cards. I got excepted by my bank for the loan with an exceptional high interest rate but knowing if I had declined their offer this would effect my credit score I reluctantly accepted. I have recently been able to to view the loan details and was so surprised by the total amount of money I will have to pay back. My bank has put an interest rate of over 15% on my loan which was a shock to me to say the least. Does anybody know if there is something I can do about this? Please help!! Thank you for reading

Gaz83

Scousesean wrote: »

Hello everyone, this is my first ever post, I need some help! I took out a loan with my bank a year ago, I had bad credit ratings so I applied to my own bank I had been with for years and done this online. This was before I knew about soft searches for loans and credit cards. I got excepted by my bank for the loan with an exceptional high interest rate but knowing if I had declined their offer this would effect my credit score I reluctantly accepted. I have recently been able to to view the loan details and was so surprised by the total amount of money I will have to pay back. My bank has put an interest rate of over 15% on my loan which was a shock to me to say the least. Does anybody know if there is something I can do about this? Please help!! Thank you for reading

What do you mean you "have recently been able to view the loan details"?

Surely you'll have seen how much your monthly payments were before you took the loan?

[Deleted User]

Scousesean wrote: »

Does anybody know if there is something I can do about this?

You could pay it back.
You could get another loan and pay it off, if you're able.
You could stop paying it and default.

That's about it, really.

Dobbibill

all summed up above really.

other option, over-pay on your loan to pay it off sooner thus saving you interest costs.

Superscrooge

What is the term of the loan? 15% loan for 10 years is very expensive. 15% loan for 1 year is a lot cheaper in interest payments.

Katherine14

I would be interested in this ?!

Ebe_Scrooge

Scousesean wrote: »

but knowing if I had declined their offer this would effect my credit score

No it wouldn't have affected your fictitious credit "score" at all. The only effect on your credit history would have been the initial search, and that would have been a negligible effect at worst.

That aside, as ZX81 says, your only real option is to pay it off - whether through savings or via another, cheaper, loan.

Oh, and frank Ray - would this "private lender" be yourself by any chance, seeing as how you've recommended him in 2 posts ? Can you lend me some dosh to buy a job lot of Spam please ?

foxy-stoat

Took a loan a year ago and only now can you see the interest....I wager that what actually happened is you took a loan out a year ago and only recently read the agreement.

Follow the advice in zx81's post and you wont go far wrong !

Good luck and let us know how you get on.

CottonTail

Dear Sean, I can only assume that at the time of taking this loan you were under a lot of stress and had not fully comprehended what you were signing up for. At the time it may have felt like getting any loan to help clear existing debts was the only way out?

As the loan was with a high street bank, that would have had to show you the TOTAL amount payable as well as the amount you are borrowing.
They would have clearly been on the paperwork you signed.
Unfortunately you don't have many options appart from refinancing the loan with a cheaper provider or 0% money transfer rate for a few years (might be difficult if this loan is already for a high amount)
Or as other commenters say, bite the bullet and keep up the repayments to the end.
in future I'm sure you will always be more careful to read the loan calculations :0(

DCFC79

CottonTail wrote: »

in future I'm sure you will always be more careful to read the loan calculations :0(

Or if not sure they ask the member of staff or ask a friend to explain it.

Herzlos

They'd have told you the costs before you took it out. With a bad credit rating it might not actually be that bad a deal though.

Your only option is to pay it off - either with cash via overpayments, or by taking out a loan at a lower rate.