Reducing my debt with another loan?

Dobbibill

It's unlikely you will get a loan as a lower APR as you will be asking lenders to double your debt (the loan you have plus the loan equivalent again). They have no way of knowing you will absolutely pay off your existing debt and needing to lower your monthly payments because you are a struggling means you probably won't pass affordability checks. 

Post a SOA so your outgoing can be reviewed by the very good forumites on this site.

Here is the link https://www.lemonfool.co.uk/financecalculators/soa.php

As for your credit score, do not pay too much attention to the number. it means very little. 

Grumpelstiltskin

Nafta Please don't keep starting threads each about one aspect of your debt.

Stick to one and as Dobbill says complete a SOA so we can see the full picture of your problem then we can give you the best advice.

fatbelly

And check that your car loan is a loan. If it turns out to be hire purchase then you would be losing statutory rights by refinancing it with a loan

Nafta

Dobbibill said:

It's unlikely you will get a loan as a lower APR as you will be asking lenders to double your debt (the loan you have plus the loan equivalent again). They have no way of knowing you will absolutely pay off your existing debt and needing to lower your monthly payments because you are a struggling means you probably won't pass affordability checks. 

Post a SOA so your outgoing can be reviewed by the very good forumites on this site.

Here is the link https://www.lemonfool.co.uk/financecalculators/soa.php

As for your credit score, do not pay too much attention to the number. it means very little. 

Thank you for your reply. I am not struggling to pay it, just wondering what my options are to refinance and get a better deal. I get more of my incoming free.Perhaps talking to the lender? 

Nafta

fatbelly said:

And check that your car loan is a loan. If it turns out to be hire purchase then you would be losing statutory rights by refinancing it.

Thanks, I will do

Nafta

Grumpelstiltskin said:

Nafta Please don't keep starting threads each about one aspect of your debt.

Stick to one and as Dobbill says complete a SOA so we can see the full picture of your problem then we can give you the best advice.

Grumpelstiltskin said:

Nafta Please don't keep starting threads each about one aspect of your debt.

Stick to one and as Dobbill says complete a SOA so we can see the full picture of your problem then we can give you the best advice.

Apologies. I will put it together and share. I am just looking how to improve my finances. Only debt I have is an old overdraft that hopefully will be statute barred and the car. I have two credit cards but that are paid in full and I only use in emergencies and then pay in full again. 

ManyWays

Is this HP or PCP? If it is HP, you can hand the car back halfway through and not pay any more (this is called voluntary termination). At that point you could VT the car and then get a loan to buy another car or get another on lower-cost finance. 

Im not saying this is a good option for you, but if your credit record is now much better it may work.

(This also works with PCP, but there the halfway point is much later as it takes into account the balloon payment at the end.)

RogerPensionGuy

Of interest. 

What is the interest rate on the car loan?

Is there any penalties for paying off car loan early? 

sourcrates

Both threads merged for clarity.