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Moving Debt to reduce interest
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Jackamo25
Posts: 1 Newbie
Hi there,
I recently got a car with a hire purchase agreement from Motonovo. The APR and interest is around 25% of the loan. Quite high, but I lost out badly on my previous car having owned it for 8 months and it then being written off! So I felt I had no choice but to take on a expensive loan.
I've always had fairly poor credit rating and have one delinquent account 4 years ago on my name. I want to get a better loan so I can cut down on the interest as it is giving me anxiety knowing that a quarter of my monthly payment is interest!
In short, I'd like to get a bank loan to pay off the agreement and then I can own my car outright and the new debt will have lower APR etc. than the initial HP agreement. The problem is no lenders are offering me anything sensible. 35%-50% APR
Any advice? Just sit it out? Take out smaller loans?
All would be gratefully received!
I recently got a car with a hire purchase agreement from Motonovo. The APR and interest is around 25% of the loan. Quite high, but I lost out badly on my previous car having owned it for 8 months and it then being written off! So I felt I had no choice but to take on a expensive loan.
I've always had fairly poor credit rating and have one delinquent account 4 years ago on my name. I want to get a better loan so I can cut down on the interest as it is giving me anxiety knowing that a quarter of my monthly payment is interest!
In short, I'd like to get a bank loan to pay off the agreement and then I can own my car outright and the new debt will have lower APR etc. than the initial HP agreement. The problem is no lenders are offering me anything sensible. 35%-50% APR
Any advice? Just sit it out? Take out smaller loans?
All would be gratefully received!
0
Comments
-
You need to be careful, when paying off HP early.
You could find yourself paying extra, on top of the outstanding amount.
You should investigate thoroughly, before committing to early settlement.0
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