Loan while on pension advice

gaz2483

Hi all,

Just wanting some advice..
My mam got a new kitchen through Barclays loans when a man from Kitchenplusltd were doing door to door sales. She is a homeowner with no mortgage so agreed to go ahead as the kitchen needed fixing and unfortunately didnt ask for advice.
The kitchen plus massive interest was 11k and payable over 15 years!!!
Thankfully she has managed to pay a bit extra off to get it down to 10k and reduce the years its paid over.
is there anyway do you think she could get a loan from another lender at a better rate of interest?

She receives £140 per week pension+ £90 per month work pension and has a good credit history.

Her agreement is 9.90% interest per year.

Any help would be much appreciated.

Thanks

[Deleted User]

It depends on her circumstances, not least her income, debts and credit history.

macman

It would help if you told us what rate she is paying at present, and what the terms are for early repayment? 'Massive interest' doesn't really tell us much.

gaz2483

I have updated my first post after speaking to her. Thanks for the replies.

[Deleted User]

She won't get another 10k loan on that kind of income, unfortunately. The combined debt, until one is paid off, would be around twice her income.

Best advice is to overpay as much as she can.

Willing2Learn

Has your mother considered trying for a money transfer card at 0%? She could try an eligibility checker for a 'soft' search. If eligible, and if she used the card the right way, that could reduce repayments.

https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

Edit: And welcome to the forum gaz2483

gaz2483

Thanks willing to learn

She has no other credit card to pay some of balance and then balance transfer it if eligible. Could she transfer some of the debt straight to a balance transfer credit card or is she unable to do that?

Thanks in advance

Willing2Learn

A money transfer card and balance transfer card are two completely different products. Your mam would need a money transfer card, so that the transfer is a cash transfer straight into her bank account. Once in the bank account and can be used to pay the loan. A balance transfer card is used to transfer a balance from one credit card to another card.

MallyGirl

With that sort of income, even if she was to get a money transfer card, it seems unlikely that she would be able to pay off the balance before it jumped to 20ish% APR so that would be worse than where she is now.

macman

First check you can get a better rate elsewhere. 9.9% is not excessive by credit card standards: the problem is that she's paying it off over x years rather than sooner.

Willing2Learn

MallyGirl wrote: »

With that sort of income, even if she was to get a money transfer card, it seems unlikely that she would be able to pay off the balance before it jumped to 20ish% APR so that would be worse than where she is now.

I meant that the money transfer is used to pay off only a chunk of the debt. I never meant it to be for the whole loan. Sorry for not being clearer.