Loan Question

determined_2_b_debt_free

Hi,

I currently have a 20k loan with Halifax over 6 yrs at 13.9%. Obviously this is not the greatest rate but was all I could get at the time. As my credit limit gets better (hopefully) will I be able to go to my bank and ask them to reduce the rate? Alternatively I could look elsewhere and get a better deal? Any advice would be much appreciated.

Thanks,

Rafter

Hi,

Welcome to the forums.

That is a nasty sounding rate, but for a loan of that size with a less than perfect credit history it is about right.

Halifax are unlikely to reduce your rate, unless you have somewhere else to take your money.

If you are managing to keep up your payments, and aren't building up debts elsewhere, then your best bet is to keep budgeting and chip away at it to try and reduce the amount.

If your credit rating is likely to improve (any late payments are more than 12 months old) no CCJ's or mortgage arrears etc then you should look to see whether you can get any 'life of balance' credit card offers or a better personal loan to get your rate down.

I guess you aren't a homeowner but if you are, and your property has gone up in value, you could get a further advance on your mortgage which is likely to cost you a lot less in interest. However, you will be putting your home at greater risk so it isn't something you should do lightly.

Post back if you have any questions.

R.

determined_2_b_debt_free

Thanks very much for the response. No i'm not a homeowner. I guess my only option as you've said is to chip away at it. Currently I have 6k on an interest free credit card (for 15 months) so I will just have to persevere with it for the moment.