everything finanical

babyboy_3

hi i took out a loan in 2006 for £500 after they took out insurance i was left with £375.i was paying £40pm over 12 months,however as this was the only credit available and i needed money for a house repair i contacted them again.last march the rep came to my house and we filled in the paperwork reguarding a second loan,they gave me £500 out of which they took £125 insurance again.but im now paying £65 pm over 3 years my friend thinks this dosent sound right what do other people think,i am finding it hard to pay this every month.please help any advice?

GeorgeUK

This doesn't look right.

The full loan amount was £500?
and you are paying this over 3 years at £65 per month?

This would mean the APR is about 325%

Who is this with?

babyboy_3

hi got dates wrong ist loan taken march 2007 applied for second one nov 2007

babyboy_3

the company is called everything finanical.also got dates wrong please read post that i added thanks babyboy

GeorgeUK

I don't care what the dates are. £65 pm for 3 years, for a £500 loan is just crazy!!

I take it this is due to bad credit history?

Have you contacted one of the free debt charities and had advice from them?

Most people complain about their CreditCard interest going up to 28%-32% APR. The amount of interest you are paying is as close to legal robbery as you can get.

babyboy_3

thanks george do you think if i go to cab they will be able to help and maybe sort out a lower repayment.i dont think it was bad credit,they came around door to door selling saucepans on weekly terms i brought a set after that i kept recieving letters offering me a loan as i say i had the ist one for a repair.

GeorgeUK

Really not sure what to suggest for this - never come across it before.

If you have a look at some of the websites for the high street banks, you will see what they are offering for a loan APR (although smaller amounts usually do have a higher interest rate)
Try putting that in to this calculator to see the difference in how much the repayments would be over 3 years.
http://www.whatsthecost.com/loan.aspx

I would try bumping this thread at a more civilised time tomorrow to try to get more people to see it, but would also look through some of the previous posts - do a search for loans and bad credit.

I'd phone either CAB or CCCS to see what they say - possibly also ask these crooks what the current final settlement figure is for repaying the loan early, but only after you get advice on how to deal with them.

It would be much cheaper to even get another loan - with the penalty fee for early repayment and paying this instead - it would be ALOT cheaper.

There is also a snowball calculator in the link i mentioned above - try putting the details into that and you will see exactly how much this is costing you.

turbobob

£65 p/m for 3 years (i.e. £2340 in total) for a £500 loan is ridiculous. Seems a lot of the products they show show on their web site have APR's in the hundreds though - http://www.everything-financial.co.uk

babyboy_3

thanks everyone for the advice.will contact cab on monday.

GeorgeUK

Good luck with this - let us know how you get on.

Would be good to see what the procudure is to deal with something like this.

I'll try bumping the thread tomorrow to see if anyone has had this experience before.

babyboy_3

hi me again sorry to be a pest.hi george if your online.got paperwork for loan
altogether with the 2 loans i owe 796.52 total ammonut payable is 1.973 52 interest is 102.90% fixed rate of interest is 48.0000% there is nothing about early repayment the boxes are blank.thanks for reading this you lovely people