Personal Loans

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Intrigue
Member
@intrigue
Join Date: 2010
Post Count: 208
April 19, 2011 - 5:29 am
Hello,
Just seeking some info for a friend re: personal loans
My friend has personal loan debt of approx $18,000 (result of divorse settlement) I believe they currently pay in the order of 16% interest on this amount. I had a quick look on info choice and see that there seems to be many offering rates around 13%.
Just thought I would check in for any pointers from my good friend forumites.
While I believe my friend does have a share ownership in mothers house I am not sure if this is available for security. Also has a car loan of approx $10k. If is obvious this person needs to get rid of some bad debt, just trying to steer in the right direction of not wasting too much money on excess interest rates!
Tips anyone
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
April 19, 2011 - 7:44 am
unfortunately there are no easy answ or solution.
Even if he place this loan into a mortgage debt refinance structure and the interest rate WAS at the standard rate of 7%- the loan would be over 30 years…so in effect his monthly repayment would be less but over a long period of time he would have paid a higher interest and amount.
16% on a personal loan is normal for a “unsecured” loan.
It’s possible for him to apply for a secured personal loan and using a 2nd car, boat, or part of the home as security – rate would be around 11-14% for 5 years.
Regards
Michael
Mick C | Shape Home Loans
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tenantfile
Member
@tenantfile
Join Date: 2011
Post Count: 1
April 28, 2011 - 4:09 pm
There is not any fix solutiion for this problem .If you are having any type of personal loan than pay the installments in advance so that you have to pay less interest for your further amount.