Paying off Amigo loan

Hevensangel84

Good afternoon
My partner has a loan with Amigo, he's just called them to find out the remaining balance which is just shy of £1800. He currently pays £123 a month and I saw on a recent statement about £80 of that is interest. What is the best way to pay it off? We don't have the money in the bank so would mean getting another loan or a credit card. I'm willing to use my good credit rating to get one of these so getting credit shouldn't be a problem. Any help or advice would be appreciated

Arleen

Sure, you could take a personal loan and use it to repay his amigo loan with it, it sure will save him a lot of money. Just keep in mind that he will then owe money to you, and people who need amigo loan in the first place generally do not have a good history of repaying what they owe.

Mobeer

Given Amigo Loans have a "Representative 49.9% APR (variable)" then taking out another loan to repay that loan might seem sensible. Alternatively to a loan, a money transfer credit card might be a better option:
http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

But in general don't like the idea of borrowing to repay a loan - it seems a bit like heading in the wrong direction. You could alternatively try to overpay a little each month - each overpayment would reduce the interest arising before the next payment and that effect can considerably reduce the number of repayments needed.

boliston

Hevensangel84 wrote: »

Good afternoon
My partner has a loan with Amigo, he's just called them to find out the remaining balance which is just shy of £1800. He currently pays £123 a month and I saw on a recent statement about £80 of that is interest. What is the best way to pay it off? We don't have the money in the bank so would mean getting another loan or a credit card. I'm willing to use my good credit rating to get one of these so getting credit shouldn't be a problem. Any help or advice would be appreciated

Does the loan have a guarantor?

DCFC79

boliston wrote: »

Does the loan have a guarantor?

Im hedging my bets on that yes there is a guarantor

Hevensangel84 wrote: »

Good afternoon
My partner has a loan with Amigo, he's just called them to find out the remaining balance which is just shy of £1800. He currently pays £123 a month and I saw on a recent statement about £80 of that is interest. What is the best way to pay it off? We don't have the money in the bank so would mean getting another loan or a credit card. I'm willing to use my good credit rating to get one of these so getting credit shouldn't be a problem. Any help or advice would be appreciated

You could try using your credit rating but lenders dont use credit ratings for loans let alone see them. Id like to be there to listen to the convo where you speak to a lender and say due to your credit rating they should offer you a loan.

Heed the advice thats previously been posted.

ReadingTim

Arleen wrote: »

Sure, you could take a personal loan and use it to repay his amigo loan, it sure will save him a lot of money. Just keep in mind that he will then owe money to you, and people who need amigo loan in the first place generally do not have a good history of repaying what they owe.

Furthermore, the chances of you being able to get any money out of him should be decide to stop repaying you are basically nil, therefore the real question is whether you can afford to take on a £1,800-2,000 loan yourself?

Mobeer

ReadingTim wrote: »

Furthermore, the chances of you being able to get any money out of him should be decide to stop repaying you are basically nil, therefore the real question is whether you can afford to take on a £1,800-2,000 loan yourself?

Though if the OP is the guarantor of the existing loan (which seems likely to me) then this is no different from the current situation. In this case is probably preferable to have the guarantor directly borrow the money instead, as it prevents the risk of the guaranteed loan borrower incurring fees before the lender goes to the guarantor for payment.