84 month loan

Jannie1960

I took out a loan to help my sister in Jan 2013 £3,900 with high st bank over 84 months at 90.55 per month she stopped paying it back in Oct 2016 as she felt she had paid enough!! I'm left with £2200 to pay off what the best way to do so to limit interest ?

Little_Miss_Winner

Hi .. whos name is the loan in ? Yours?

Clive_Woody

Pay the balance in full now

Jannie1960

Unfortunately yes

Jannie1960

Unfortunately I don't have full amount to do that

Pixie5740

Make overpayments to reduce the total amount of interest paid. The alternative is to ask the lender to freeze the interest but that could lead to defaults on your credit files.

In the meantime you can send your delightful sister a Letter Before Action telling her that she has to start repaying the money because she hasn't paid enough. If that doesn't gee her into action you can file a Money Claim Online and take her to small claims court but you should keep repaying the loan unless you want your credit files ruined.

Geoff1963

It may be very difficult to prove to a court that the loan ever existed. The daytime TV "real live judges" are full of such cases. Even if you won, if she doesn't have the money, you still won't get it back quickly.

I think the only answer with lending to friends & relatives is to think of it as a gift ; and if they decide to give you back a similar / greater value gift, that is very nice of them.

[Deleted User]

Show her the paperwork that proves she HASN'T paid enough !!!

Alderbank

What paperwork would that be?

In the first post the OP says she herself took out the loan to help her sister.

jonesMUFCforever

Alderbank wrote: »

What paperwork would that be?

In the first post the OP says she herself took out the loan to help her sister.

A statement of the loan account would show a) the original amount borrowed b) the monthly repayment and c) the outstanding balance now.

Candyapple

Jannie1960 wrote: »

I took out a loan to help my sister in Jan 2013 £3,900 with high st bank over 84 months at 90.55 per month she stopped paying it back in Oct 2016 as she felt she had paid enough!! I'm left with £2200 to pay off what the best way to do so to limit interest ?

Based on the info you gave, by my calculations, the APR on the loan you took out was 23.9%.

I imagine your sister stopped paying you because she thinks the loan is paid off (Jan 2013 to Oct 2016 = 45 months. 45 months x £90.55 = £4,074.75) in fact I think she probably even thinks she has OVERPAID you by the tune of £175!

When you initially took out the loan, did you not tell your sister that you had a poor credit history so the only loans you could get would be a high interest one and one that would run for 7 years and she would end up paying back double?

All you can do now is see if you are eligible for a cheaper loan, or failing that, a 0% money transfer card.

https://www.moneysavingexpert.com/eligibility/loans-calculator/

https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.35251297.1503816494.1496911259-2037965741.1496911258

As for chasing the rest of the loan balance, you've been given advice above from other posters.