Can

NeedAdviceFC

So I last year I took out a personal loan to help pay off previous credit card debts. The personal loan debt is now at £8,223
I have always paid on time and have been doing so the last 12 months, however my interest rate is 14.2% which means that whenever I pay the minimum £198.80 per month with the extra odd £100 added every other month, I still have around £110 interest charges added every month, so it feels like 2 steps forward one step back and I don't know how I can escape the problem.
I have spoken to the bank and they said the only way I can reduce it is if I re-finance the loan, but have already tried and I am not eligible, my other issue is that I looked online and was eligible in the first instance to acquire another loan for a much cheaper interest rate (3%) but the last time I done it, I also got rejected entirely.
I am looking for advice if possible.
  

[Deleted User]

Throw as much as you can towards the debt. Every extra penny will bring down the balance and reduce the interest.

Visit the DFW boards for inspiration.

sourcrates

Hi,

Don`t consolodate (again) it never works, and never deals with the underlying problem.

If your finding it hard to stay afloat, you could concider debt management, or other regulated debt solution, if appropriate, depending on your circumstances, of course you may just need to budget better, why not pop over to the DFW board, post your statement of affairs, you`ll find the link in the sticky, and we will be able to advise further.

bris

Personal loans are meant to be paid off at the end of the term you apply for, so say 10k over 5 years. Is yours different, you say minimum payment but that to me sounds like some form of credit card type system where they allow minimum payments that never really let the debt get paid off. So what was the loan you took out?

NeedAdviceFC

it was a personal loan, i have only been paying the minimum amount, and it does state the more i pay off then i can reduce the overall interest, as previous comments above suggest, i will have to just try put all my spare cash into it to pay it off quicker but i appreciate all the advice, and bris said:

Personal loans are meant to be paid off at the end of the term you apply for, so say 10k over 5 years. Is yours different, you say minimum payment but that to me sounds like some form of credit card type system where they allow minimum payments that never really let the debt get paid off. So what was the loan you took out?

Shakin_Steve

You don't say what the APR and monthly payments for the loans you paid off were. If they were higher, then you have achieved what you set out to do, surely?