Loan to pay off car finance?
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Hi there!
I am considering applying for a loan in order to settle a pcp car finance deal for the following reason:
Basically my wife and I are currently 2 years in to a 4 year pcp car finance deal and due to my wife recently giving up work to care full time for her mother who suffers with dimentia we are now finding the repayments taking up too much of our monthly income.
After shopping around I have found some low apr loans which if attainable, would over a 6 year term reduce our repayments to a more manageable level whilst at the same time allowing us to pay off the car in full rather than having to deal with the pcp balloon payment which we usually end up swapping the car to avoid.
There are a few things I would like advice on here, Is restructuring the debt in this way a good idea? Can I take out a loan to pay off the finance for the car despite it being in my wife's name? Would restructuring the debt in this way negatively affect our credit ratings? Is it even possible to do it?
Sorry for the long post, I am genuinely extremely appreciative of any advice as my understanding on debt restructuring is very limited. Thanks.
I am considering applying for a loan in order to settle a pcp car finance deal for the following reason:
Basically my wife and I are currently 2 years in to a 4 year pcp car finance deal and due to my wife recently giving up work to care full time for her mother who suffers with dimentia we are now finding the repayments taking up too much of our monthly income.
After shopping around I have found some low apr loans which if attainable, would over a 6 year term reduce our repayments to a more manageable level whilst at the same time allowing us to pay off the car in full rather than having to deal with the pcp balloon payment which we usually end up swapping the car to avoid.
There are a few things I would like advice on here, Is restructuring the debt in this way a good idea? Can I take out a loan to pay off the finance for the car despite it being in my wife's name? Would restructuring the debt in this way negatively affect our credit ratings? Is it even possible to do it?
Sorry for the long post, I am genuinely extremely appreciative of any advice as my understanding on debt restructuring is very limited. Thanks.
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Comments
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Yes you can do it as long as you know it then becomes your debt not your wife'.
Are you planning to take a 6 year loan now so at the end the car will be 8 years old?
Will it last that long - is there underlying debt issues which you may need to tackle now?0 -
How much are the payments and what will your income now be?0
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Thanks,
Yes I was planning on taking the loan now, the car is a Seat Ateca built to order for us and only has 12,000 miles on it and we service it every year so I don't see an issue with it being 8 years old at the end of the loan.
Plus there would be the option of selling it later and using the cash to pay off the loan anyway if we decided we needed a newer car & Hopefully my wife would be back in work by that point in any case.
My wifedoes also have have some debt on credit cards, but nothing we can't repay within the year, although I expect it may affect her ability to get a loan hence why I would prefer to apply in my name.
I am also concerned about whether or not restructuring debt negatively affects your ability to get future loans since we intend to eventually apply for a mortgage once my wife is working again?0 -
Just as an aside....
Your wife may be able to qualify for carers allowance which whilst not a great amount may ease the financial pain a little.0
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