Moving this loan elsewhere

frak

Hi all,
A little advice needed here.
Over past 6 months have paid off credit cards, overdraft and family debts, and am in a reasonably well paid job. However i still have one debt that is niggling me.
I have a loan with online Lloydstsb load which i took out last xmas to cover other old debts. It had a four month deferrment on it and the loan amount was for 6500. I now owe £6173.89. I got a final settlement statement a couple of months ago but it was for more than the actual loan amount. Must be penalties and rule 78 on it. I want to pay this off quicker than the 3 1/2 years that is remaining on it. Not sure what is my best option. I can afford to pay it off at £200 a month but sometimes would like to pay more without penalty. Should i go fo a SBT on a new card, as i have a 0% egg and 0% natwest that have about 200 and 300 on them respectively, but these are paid off each month now, or should i get a flexible loan and with who ?
I really want to move away from Lloydstsb as they have talked me into some bad decisions in the past, throguh their so called advisor, and they charge me for my banking at the momemnt so am gogint change banks as soon as i can sort this loan dilema out.
Thanks for reading

frak

mountainofdebt

When you say that you owe £6173.89 does that mean that's the amount you borrowed less than the repayments made or is that the total repayment figure less repayments made?

What interest rate are you paying on your loan? What are your repayments now?

I'm only asking as it might not be possible to get another loan for as cheaply as you are paying for now and you have to remember that you would in effect be paying interest on interest if you did that.

What are the terms of your natwest card/egg card..would any transfers now be at 0% and would they attract a fee ? How long have you got left on the 0% deal. Also you would have to be very careful as you are spending on your card so you would have to look at the way repayments were allocated.

It might be an idea before you make any decision, to put any spare money into a savings account so that if you do decide to re-finance this loan you can opt for a lower amount. If you decide not to, then personally I would put any spare cash into this savings account so that when it is big enough you can pay off the loan early that way. In the mean time the interest rate from your savings account will be offsetting the loan interest rate.

Personally I can see no reason why you can't change banks now for your day to day banking. If you have to have a lloyds bank a/c to service your loan then I would change your account to a normal non fee paying one....unless there is a specific reason why you can't.

hth

asandwhen

It is possible to pay off loans with lloydstsb without the penaulties - I did this in may this year - all you have to do is pay off the amount minus 1 months payment - they will then take this and the account will be closed - this loan will be flexible and you can make overpayments without penaulty.

frak

excellent thanks, didnt know i could make overpayments on this loan.