Loan advice needed

Musicjunkie
Musicjunkie Posts: 1 Newbie
in Loans
Hi,
My husband and I recently took a £6000 Loan out to clear debts, holiday and needed to buy some bits for houses, actually rephrase that, wanted to!

Regretting it now as the interest is so high. We are paying of £161 a month but the interest is anything from £70 to £105 that was the most recent one.

Seems like we will never pay it off. Any suggestions to what we could do please?

Thanks

:money:

Comments

  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    You'll pay it off when the loan term ends, assuming you keep up with repayments.

    I'm not sure what you're asking here. The obvious answer is to make overpayments where possible or refinance with a lower interest rate but neither of those may be possible.

    I find it hard to believe you recently took out a loan and didn't comprehend that a large chunk of your repayments would go into paying the interest

    This isn't the 90's, loan agreements are very clear nowadays.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    First Anniversary Name Dropper First Post Photogenic
    edited 8 August 2018 at 5:27AM
    Musicjunkie wrote: »
    My husband and I recently took a £6000 Loan out to clear debts, holiday and needed to buy some bits for houses, actually rephrase that, wanted to!

    Regretting it now as the interest is so high. We are paying of £161 a month but the interest is anything from £70 to £105 that was the most recent one.

    Seems like we will never pay it off. Any suggestions to what we could do please?
    Hi Musicjunkie and welcome to the forum. :)

    Why not apply for a Money Transfer credit card. Preferably one with 0% interest for 36 months!!

    Just transfer the money into your bank account and then pay off the loan. You then have 3 years to pay off the card, interest free.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Herzlos
    Herzlos Posts: 14,686 Forumite
    First Anniversary Name Dropper First Post
    The best thing to do is overpay it as much as you can (clear it earlier) and then take it as a lesson learned. At least it's only £6000 this time!
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Was it £161 over 5 years?

    I would agree £3660 interest is a lot - but you would of known that when you accepted the loan.

    Overpay where you can and you will clear it sooner.
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
    Name Dropper First Post First Anniversary
    Musicjunkie wrote: »
    Hi,
    My husband and I recently took a £6000 Loan out to clear debts, holiday and needed to buy some bits for houses, actually rephrase that, wanted to!

    Regretting it now as the interest is so high. We are paying of £161 a month but the interest is anything from £70 to £105 that was the most recent one.

    Seems like we will never pay it off. Any suggestions to what we could do please?

    Thanks

    :money:

    At £6000, that amounts to quite a lot of debt, expensive holiday and lots of things for the house.

    Are you overspending on what you earn?

    Put up a SOA http://www.stoozing.com/calculator/soa.php so we can see where it may be possible to help you cut down on spending and get this off your back quicker.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    I'm guessing that you've taken a £6k loan with an APR of 21% over 5 years. Does that sound about right? Is that the only loan you were able to get or did you only try one lender?
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Money transfer card is your best option - you wont get a low interest loan for debt consolidation as you have already proven.
  • davidwood681
    davidwood681 Posts: 881 Forumite
    I bet you didn't ''regret it'' whilst you were on holiday though, did you?
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