Joe had been getting loans from his local Provident agent for years and always made the repayments on time. He noticed that Conduit Scotland had opened a shop in town and decided to check how much a loan would cost.
Joe did not know a great deal about interest rates and the Representative APR but he did know that APR stood for Annual Percentage Rate and is a useful tool to compare different loan providers. The Representative APR includes all mandatory charges such as arrangement fees as well as the rate of interest on the borrowed amount.
Conduit staff had a discussion with Joe about his existing loans which Joe wanted to pay off by borrowing the funds at their lower rate of interest of 89.9% APR, Representative APR 112.9%. Joe was advised to ask Provident for a settlement figure and to bring in his repayment books.
The following day, Joe returned with his resettlement figure of just under £3000 which was spread over several different loans with varying rates of interest (most being as high as 299%, and another with no interest rate quoted but was for £1000 with interest of £1392 on top over the two-year period of the loan).
As Conduit Scotland are unable to offer consolidation loans for debts held with other lenders, the onus is on the customer to use the funds to clear any such debts. Joe was adamant he would do this.
Joe was approved for a loan of £1000 over 12 months: he still met the affordability criteria for the Conduit loan even though he was paying Provident from his Royal Navy pension and his state pension. It was also clear from Joe’s credit file report and his Provident payment records that Joe was repaying his existing loans.
Conduit Scotland told Joe that if he kept up his excellent repayment record for the first six months of the Conduit loan, then Conduit would consider giving him a top loan of £2000 to clear the residual Provident loan amount and further reduce his outgoings.
Joe was really pleased with this outcome as he could now pay off the highest interest loan with the Provident and reduce his outgoings every month.
Joe felt he could now see the light at the end of the tunnel as it seemed possible to end the continual cycle of borrowing from a door step lender with high interest costs.
The icing on the cake for Joe was that Conduit also noticed that he had excessively high heating costs, and with his permission, they referred him to Cosy Kingdom for help reducing energy costs. This would help Joe save more money by maximising his income and reducing his outgoings.
–
Conduit Scotland are unable to offer consolidation loans for debts held with other lenders. The onus is on the customer to use the Conduit funds to clear any such debts.
Conduit Scotland offers fair, flexible and affordable loans and is a responsible lender regulated by the Financial Conduct Authority (FCA). Conduit Scotland, a different type of lender!
Free energy advice through http://www.cosykingdom.org.uk/