IA's road to becoming a CAB Debt adviser.

yellowmonkey

immoral_angeluk wrote: »

Current Debt

Car HP £4751
TV 0% til Oct - £955
Egg £235.40

= £5941.40


Our Debt is officially under 6k!!!! :T:T:T:T:T:T:T
We have paid off 58% off out debt since Oct 2006.

I doff my cap :T:T:T

Well done

ym

bandraoi

immoral_angeluk wrote: »

There is. Pay half off and return it but I'd rather just pay it off asap. That and there's no guarantee we'd get a decent interest rate..

True, but you could look around and see and work out the numbers.

You got an egg card on 0%, so your credit rating must be relatively ok. The chances are what you'd be paying is far lower than the current rate.

immoral_angeluk

bandraoi wrote: »

True, but you could look around and see and work out the numbers.

You got an egg card on 0%, so your credit rating must be relatively ok. The chances are what you'd be paying is far lower than the current rate.

0% balance transfers yes and the next one isn't til 2009. The standard APR is 16.9. But surely if I did that I'd just be paying interest on top of interest??

Snaggles

Why would you need to return the car to get a better interest rate? Wouldn't the simplest solution (if your credit rating has improved....which it seems as though it may have) be to just take out a loan at a lower rate and pay the car finance off?

Just make sure you check if you can overpay the new loan, and make sure there are no penalties for early redemption.

bandraoi

Is the interest on the loan front loaded or not?

tigzem

Well done on getting under £6k....:j xx

immoral_angeluk

bandraoi wrote: »

Is the interest on the loan front loaded or not?

Yup. As far as I'm aware. Hence why I'm not keen on refinancing.

Snaggles

If you will have to pay all the interest anyway, then there's no point - but sometimes the interest is front loaded and then if you repay early you get a pro-rata refund of the interest. If you're thinking about shopping around, you could ask them for a settlement figure, and also ask them for a breakdown of that figure to see if any interest refund is included.

Although I reckon you will have it paid off within the next year anyway, so you might find it's a lot of effort just to save a few quid.

immoral_angeluk

In other exciting news.. just had my first Pub AS party booking :D:D:D

bandraoi

That's why I was suggesting looking into just handing it back, depends alot on the numbers, especially what the car is worth now.

Say the car is currently worth £3000, and your options with the finance company are to pay the full £4751 or to hand the car back. You could hand the car back, and buy another one for £3000, on a normal loan at say 10%. In that scenario you could save yourself £1000 or thereabouts.