Jun
30
How can I trim payments down on my loan without paying more?
By
Hi,
Since finshing a long term relationship recently,I’ve been struggling to survive with the amount of money I have left due to various commitments like my car, flat etc.
I am currently paying a large loan off which I had in June over 4 years to help me get a new car. Now I live on my own, I’m struggling to survive! Is there any way where I can bring my payments down on the loan without increasing the APR?
People have told me to get another loan at a cheaper APR but the problem you face is that you there’s charges for paying a loan early (which sucks!)
thanks for reading and I’ll look forward to hearing from you soon. All the best
Sell and Rent Back
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5 Comments
April 24th, 2009 at 6:09 am
I expect you have a checking account at a local bank, hopefully you’ve been their customer a while and haven’t been bouncing checks.
Talk to a loan officer there. I’m guessing you have 2 years left on the car loan, you may be able to turn that into 4 years at your local bank with very little in the way of closing costs.
April 27th, 2009 at 7:30 am
Go ahead and pay the charges to pay the loan off early. You’ll probably save more money in the long run, by getting a better APR. Next time, make sure there’s no penalty for paying off your loans early (While you are getting the loan, insist on this option)
I had this same thing happen to me. My girl left, and left me with a hell of a debt! But, within a month, I got a nice promotion and now I make more money than the both of us made when we were still together. I like to put that one in her face when I see her….
April 28th, 2009 at 10:01 pm
It may be as simple as asking your creditors to reduce your loan percentage. I’ve decreased my loan percentage rate by as much as 4-5% by simply asking the lender.
A few things may work in your favor. If you have an excellent payment history, and tell the bank you are considering transferring your loan to another creditor, they may be willing to decrease your interest rate resulting in a lower APR, and lowered payments.
However, you should always do the necessary calculations. You may find that paying a fee to transfer the loan may be more cost-effective than simply lowering the balance, or keeping your current rate is better than what’s available to you.
Best of luck in your decision.
May 1st, 2009 at 12:42 am
pay the same amount of monthly payment, however pay this amount twice a month. interest is computed ona daily basis. you save a few pennies each month, but these pennies get compounded. if this is done on a 30 year loan, 7 years is cut off the back end without paying an extra cent.
May 2nd, 2009 at 3:45 am
There should not be charges for paying early– your bank is ripping you off if there is.
Ask if you can refinance to add an extra year or two onto the life of the loan. yes, you’ll be paying longer but it will help you out for now.