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Help with a couple of loans needed please
Legacy_user
Posts: 0 Newbie
After a couple of moments of madness, midlife crisis or whatever, we have got ourselves into rather a large amount of debt.
The two loans are from The Black Horse Finance Company.
Loan number 1. We borrowed £16,990.00
1 Repayment of £208.06
118 Repayments of £208.06
1 Repayments of £288
Apr 10.2
Interest 9.46% per anum
The first payment went out in September 2007
Loan number 2. Original amount borrowed was £12,500
1 Repayment of £237.90
58 Repayments of £237.90
1 Repayment of £297.90
Apr 10.3%
Interest rate 9.16 per annum
The first payment went out in October 2007.
With hindsight, the easy option (buying from a garage/showroom) wasn’t the best option.
I don’t understand how the finance works. I haven’t got much of an idea as to how APR’s work or even whether we can get a better deal elsewhere.
As far as I can make out, taking out a ‘secured’ loan would be cheaper all round but I am not happy putting our home on the line to help pay for items that will depreciate given time.
There's no guarantee even that we will be able to afford smaller payments if he is out of work and then the PPI is worthless anyway.
I could do with some ideas as to what Apr to aim for if we consolidate the two loans. If indeed this is the best option.
Both loans are in my husbands name and he has an excellent credit rating.
The two loans are from The Black Horse Finance Company.
Loan number 1. We borrowed £16,990.00
1 Repayment of £208.06
118 Repayments of £208.06
1 Repayments of £288
Apr 10.2
Interest 9.46% per anum
The first payment went out in September 2007
Loan number 2. Original amount borrowed was £12,500
1 Repayment of £237.90
58 Repayments of £237.90
1 Repayment of £297.90
Apr 10.3%
Interest rate 9.16 per annum
The first payment went out in October 2007.
With hindsight, the easy option (buying from a garage/showroom) wasn’t the best option.
I don’t understand how the finance works. I haven’t got much of an idea as to how APR’s work or even whether we can get a better deal elsewhere.
As far as I can make out, taking out a ‘secured’ loan would be cheaper all round but I am not happy putting our home on the line to help pay for items that will depreciate given time.
There's no guarantee even that we will be able to afford smaller payments if he is out of work and then the PPI is worthless anyway.
I could do with some ideas as to what Apr to aim for if we consolidate the two loans. If indeed this is the best option.
Both loans are in my husbands name and he has an excellent credit rating.
0
Comments
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Hi MM.... can't give u much advice on ur situation other than it is rarely the best option to secure debt on ur home....
Hopefully someone will be along shortly to help...
Sarah x'We are all in the gutter, but some of us are looking at the stars' - Oscar Wilde0 -
Miliesmum,
Hi, Can I ask a few questions first, are you struggling to pay these loans along with your other outgoings?
Consolidation of loans isn't really the answer usually.
Did you take out PPI?, they can be a waste of time, I'll see if I can find Martins advice regarding that.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Merlot.x."Wisdom doesn't automatically come with old age. Nothing does, except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place." — Abigail Van Buren0 -
Our household outgoings arent the problem. We live a very modest life. Household bills come to less than £400 a month and that is everything! Food is an extra £100 a week but thats for 5 adults and I would rather sort these damn loans out before I cut back on food.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Consolidation loans aren't the answer, you could end up paying more interest in the long run.
The first loan will cost you approx £24,000 in total with interest. What would your early settlement figure be?
Merlot.x."Wisdom doesn't automatically come with old age. Nothing does, except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place." — Abigail Van Buren0 -
We havent had a settlement figure for the largest loan but we have had one for the smaller loan and it was for £10,814.
It wouldnt be too hard a job to get a settlement figure for the largest loan though.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
We had the settlement figure for loan number 2 because we were thinking of exchanging the car for something a bit more ecconomic on fuel. However, there really isnt enough equity between the two figures to make it viable and hubby really needs a car for work.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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£10,814, do you have a low APR Credit card, I mean a 0% one or a 2.9% one?"Wisdom doesn't automatically come with old age. Nothing does, except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place." — Abigail Van Buren0
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No, they are not on cards they are finance agreements (loans).This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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I know they are on a finance agreement at the moment, I am asking if you could transfer the balance onto a low APR credit card, ideally 0% or 2.9% one."Wisdom doesn't automatically come with old age. Nothing does, except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place." — Abigail Van Buren0
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Oh i see!! Sorry I am dense! Would any credit card really take on such large balance transfers? I take it thats what they are. We dont have credit cards. Is that something we ought to be looking into?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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