High interest 10k loan. What can I do?

Haho26

Hey all,

long story short I took out a 10k loan around 4 years ago for a period of 5 years.

initally when I took out the loan, the interest was around 3%. Unfortunately I thought I didn’t need it anymore so ended up paying the loan back within the cancellation period.

turns out I was wrong, I did need the money. Went to take out the loan again but this time the interest was 10.66%. My situation wasn’t good and didn’t have any other option at the time so had to go with this. 

Obviously that’s a massive change in interest which I’m still paying the price for now. Is there anything I can do about this? I have about 2.5k left of the loan after paying the majority off but just feel that the interest raise was unfair just because I made the mistake of paying the loan back too early previously.

[Deleted User]

Unfortunately not, you cannot complain about a commercial decision, specifically what they offer you as an interest rate

One thing you could look at is a 0% interest money transfer card to put cash in your bank for a fee, if eligible it would give you a way to pay off the loan and save interest

Nebulous2

Did you go back to the same company, or did you shop around? Lending is a commercial decision. Lenders need to source money, complete admin, deal with queries etc. They have costs to meet. If you had just paid off a loan they may have decided the risk you represented had changed and they would price it accordingly. They are free to do that, as you are free to take your business elsewhere. 

While 10.66% isn't a prime rate, it isn't horrendous, and is a long way off some of the rates we have seen people pay. 

I guess if you really needed it then you decided to pay the higher rate. As said above you could take a new loan at a lower rate and pay it off to save interest.