Reduce interest rate on personal loan

A question about : Reduce interest rate on personal loan

Hello there,

I have a personal loan with NatWest and my monthly payment is Ј226 per month. Over half of this monthly repayment is going on interest alone and I was wondering if I am being overcharged on interest because of this at all?

My loan amount was for Ј7,500 and I think the APR is 19.8% but I am not sure on the rest and I don't have the agreement due to moving as it is in storage at the minute.

If I am being overcharged would I be able to reduce the interest rates and if so would it affect my credit score because I really don't want to damage that at the moment.

Thank you very much for your help in advance.

Best answers:

• 99.9999999% sure you are bring the rate and amount you signed up to! Why would it be any different? You knew the amount when you agreed to take the loan right?!
• If you can try getting another personal loan from another bank and pay it off in full. 19.8% is a high rate but that is what you signed up for.
  How many years? 4 years? It's about right. Most of the payments in the first year will just be interest.
  If you could get Ј7,500 at 6.9% you could clear the loan in 3 years paying exactly the same each month.
• Unfortunately that is the deal you would of signed up to, you must of been aware of the interest rate before hand.
  My bank is currently offering 4% on personal loans over Ј5000, if your credit rating is good, it may be worth shopping around, but there may be penalties for early settlement, so check before you agree to anything.
• Yeah I knew the amount to pay back roughly it wasn't thoroughly explained to me but that's by the by. I was told the interest rates but because I needed to get the loan at the time for an emergency at the time it didn't matter to me as long as I was accepted that's why it is what it is.
  It was only taken out earlier this year in January but I'd like to move into a flat of my own next year so was looking at ways of bringing down my monthly repayments if I can, I just don't want to apply for all sorts of loans and ruin my "average/good" credit rating.
• MSE's "cheap loans" page is kept updated: https://www.moneysavingexpert.com/loa...personal-loans