Moneybarn HP - Voluntary Termination & Payment Holiday

AdrianC

Wightknight said:
48 month HP agreement
...
I pay £460 a month – Car price was £13,500 in Jan 2018, total payable was £21,769

Holy carp.
That's, what, about 23% APR?

I can't afford to pay 3 months worth of payments to avoid the harm it will do to my credit file

If £1,380 is impossible to raise, and 23% was the cheapest you could find, can they really do a lot more damage?

Flight3287462

AdrianC said:

Wightknight said:
48 month HP agreement
...
I pay £460 a month – Car price was £13,500 in Jan 2018, total payable was £21,769

Holy carp.
That's, what, about 23% APR?

I can't afford to pay 3 months worth of payments to avoid the harm it will do to my credit file

If £1,380 is impossible to raise, and 23% was the cheapest you could find, can they really do a lot more damage?

Totally bonkers, this is not going to end well.

DO NOT take out any more debt until the first lot has been paid off.

lcc86

If you can't afford to catch up your arrears why are you considering taking on a brand new debt? If you ever need to VT a PCP it works differently to the agreement you have now and as others have said the 50% mark is much later on as it also includes your balloon. Personally I would see if you could find a loan at a lower interest rate to clear your current finance and just keep the car, this should be cheaper than paying the massive interest rate you're paying now.