Santander Consumer Finance - Reducing monthly payments

AdrianC

Jb_1987 said:

Morning guys. Thank you for the replies.

Interest rate is 9.1%

Arrears is £1558.96

I require the vehicle as I travel all over the county, work all times of the day/night, live in a village and have two young children.

Settlement figure: £16,211.57

Re-Scheduling:
12mths @ £194.87
36mths @ £475
adds £3349.90 in interest

I currently pay £390pm. With our current circumstances I can afford £200-£250pm.

I think there might be something you've forgotten to tell us...

Is this a PCP? How much is the balloon at the end of the term, and what does it change to after an extension?

ontheroad1970

AdrianC said:

Jb_1987 said:

Morning guys. Thank you for the replies.

Interest rate is 9.1%

Arrears is £1558.96

I require the vehicle as I travel all over the county, work all times of the day/night, live in a village and have two young children.

Settlement figure: £16,211.57

Re-Scheduling:
12mths @ £194.87
36mths @ £475
adds £3349.90 in interest

I currently pay £390pm. With our current circumstances I can afford £200-£250pm.

I think there might be something you've forgotten to tell us...

Is this a PCP? How much is the balloon at the end of the term, and what does it change to after an extension?

Yes that amount if interest suggests very little indeed is coming off the capital...

Herzlos

Jb_1987 said:

Re-Scheduling:
12mths @ £194.87
36mths @ £475
adds £3349.90 in interest

I currently pay £390pm. With our current circumstances I can afford £200-£250pm. In the next year both kids will be in school and my partner will be back to work, which will improve our finances. So ideally I need a temporary fix that gets us through this rough patch whilst things are tight. Hence why I thought the rescheduling would be suitable, but that amount of interest seems excessive.

The first thing I'd do is see if you can re-finance the settlement figure elsewhere at a rate better than 9.1%.

If you can't do that, then the most cost effective thing to do is to take the re-scheduling plan which makes the car affordable for the next 12 months and look to pay it off when your circumstances improve. You can always offset the increased interest by overpaying with whatever you have left.

The extra £3349.90 in interest is if you keep the same agreement for the full 4 years, but you can probably do something better next year and avoid the worst of it.