How AI Legalese Decoder Can Help You Strategize and Eliminate a £13k Debt Quickly
- May 17, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Introduction
When facing financial struggles, options like winning the lottery, dedicating the entire paycheque towards debt, or taking on multiple jobs may seem like the only solutions.
## Car Finance Loan Situation
The specific financial issue at hand revolves around a car finance loan for a vehicle that is no longer in possession. The car was voluntarily repossessed and subsequently sold at auction, resulting in a £6k deduction from the overall debt.
## Extended Repayment Period
A thorough calculation reveals that it will require a time span of 5 years to fully repay the loan, with monthly payments set at £250.
Using the AI Legalese Decoder can simplify this complex financial situation by providing expert analysis and guidance on navigating the terms and conditions of the loan agreement. This tool can help decipher legal jargon, clarify the repayment structure, and offer tailored strategies for managing debt effectively.
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**Addressing Legal Jargon with AI Legalese Decoder**
Navigating the complex world of legal terminology can be overwhelming for individuals who are not well-versed in the field. With the rise of artificial intelligence technology, however, there is now hope for those struggling to understand legal jargon. AI Legalese Decoder is a cutting-edge tool that can help simplify complex legal language and provide clear explanations for individuals seeking to understand their legal rights and obligations.
By using AI Legalese Decoder, individuals can easily input legal documents or contracts and receive straightforward summaries of the content. This innovative technology analyzes the text and identifies key terms, providing users with simplified definitions and explanations. This can be particularly useful for individuals facing legal issues or needing to interpret complex legal agreements.
Moreover, AI Legalese Decoder can assist individuals in making informed decisions by breaking down legal language into easily digestible information. This can help prevent misunderstandings and ensure that individuals are aware of their rights and responsibilities. With the help of AI Legalese Decoder, individuals can confidently navigate legal documents and contracts without feeling overwhelmed by confusing terminology.
In conclusion, AI Legalese Decoder is a valuable tool for simplifying legal jargon and empowering individuals to understand complex legal language. By utilizing this innovative technology, individuals can gain clarity and confidence in navigating the legal landscape.
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****** just grabbed a
what’s the interest on it? .. could you get a loan with a better rate and use that to clear it off and then repay the loan instead? .. would likely save some money if you can get a much better rate on the loan.
you joke about “3 extra jobs” and “whole paycheque” but in reality, getting another job would obviously help and looking at your expenses and budgeting to see where you can free up cash to chuck at this instead will also help. this is how people get out of debt. earn more, spend less, overpay debt aggressively.
[Stepchange.org](http://Stepchange.org)
They are a free charity organisation that will help you manage your debts.
No judgement, just help. Contact them yesterday.
You may have some recourse against the dealer/finance company if they did not complete proper affordability checks when you were taking out the finance. Check out Martin Lewis’s guide [here](https://www.moneysavingexpert.com/reclaim/mis-sold-car-finance/). There’s probably a lot more information out there too.
There’s going to be lots of details which matter and will affect whether you have a realistic claim or not, nor do I know how much you could expect to receive in compensation, but you certainly seem to tick the boxes of you not being able to afford this car from the start.
A ~30% interest loan, as you’ve said in another comment, is absurd (in my opinion). I can’t see how any financial institution would think that’s ok, but I’m no expert.
Failing all that, do you have any family you could ask to help? It’s the interest on a loan which spirals it, i know it’s risky, but if someone can lend you the money at any interest rate which is better than ~33%, it’ll go a long way in helping you.
Sadly not – other than refinancing at a cheaper rate but sounds like you’re a bit stuck.
How did the missed payments come about?
Short of being very savvy with your finances as you’ve already eluded to, no.
If you can stomach it get a second job and put all money towards it. Sell of possessions you no longer use no matter the value and pin it as a learning experience; don’t beat yourself up about it a lot of people get into car finance trouble at some point and you’ve realised the problems it’s caused and likely won’t make the same mistake again.
Make a budget and stick to, if you have decent ‘credit’ then go after all the bank switch bribes there is and put all the available money you can into repaying the debt.
Why is £250 the amount you are choosing to pay off monthly? You say you work 12 hour shifts and I see from your post history you live with your parents so where is the rest of your payslip going ?. Cut down on your other expenses, aggressively tackle the loan and you can have it down much quicker.
Let me get this straight
You couldn’t afford the payments, you knew this as your flat mate had to Photoshop your details on his payslip so you’ve commited application fraud.
You could only make 1 payment before you couldn’t keep up with the repayments.
You voluntarily gave it up and sold it for 6k at auction.
You agreed to 33.5% interest rate over X years, presumably 5?
I’m sorry but you’ve been ridiculously irresponsible and to be honest, down right stupid.
What a mess, the way you get out of this quicker? You get another job, or 2 other jobs. When I got myself in a similar situation years ago(not even half as bleak as this) I got an evening job and a weekend job so I worked for 79 hours a week on minimum wage(around £5.90 an hour in 2012/2013)
You’ll have a rough few months but zuto have front loaded the interest which means you’ll save a lot for overpaying each month.
Best of luck.
If the loan isn’t front loaded overpay, any payments go toward the capital balance of the loan and reduces the interest. Every month you’ll pay more off as an overpayment and more in your regular payment.
There is no quick fix for this which isn’t going to impact your credit file and that will follow you for six years.
Step Change – debt charity with a very useful website.
For info about getting the interest rate down: https://www.moneysavingexpert.com/loans/cut-existing-loan-costs/
33% is an insane rate to be paying, you may be able to get a 0% credit card, or a lower interest personal loan to help pay it off sooner.
Depending on your living situation, you could do things to temporality increase your income. You can earn £7,500 tax free per year for getting a lodger for example if that’s feasible for you.
Appreciate it’s not suitable in every situation however this came up in a question elsewhere so I thought I’d mention it.
What’s your credit score? Try to find 0% credit card. Then you can use it for everyday expenses and pay off your debt sooner
Speak to step change (make sure it’s a charity not a similar sounding company) – I imagine your credit is defaulted now for 6 years – so pretty sure you can pay £1 whilst working out what to do – imagine the debt will be able to be settled for a lot less .
So I’ve seen the other comments and if you report the person who got you to do it if they are charged for fraud after you report them one of the things added on to their charge might be to pay back any money you lost to that might pay off a decent chunk based off how much money they have
Then whatever you have left to pay off (or if reporting them doesn’t work and you still have to pay it all off )
I have I percentage of how much money to put into each category of stuff to pay or buy so
After paying your bills and buying essentials (the mandatory payment for the loan is added into bills)
Put
50% into investing into something depending on your risk tolerance
Put it into high yielding bank accounts or fixed bonds (make sure they don’t have low percentage of money you can make from it each month becuase some try to pay you less than you would if it didn’t have a cap )
Then put 25% into treats becuase life is to short to only work
And then put the last 25% into a spare bank account for stuff like your washing machine breaking etc .
This has been mentioned but posting again to ensure you see it. If you told them you wanted to cancel within the 14 day cooling off period then you MUST lodge a complaint with the financial ombudsman service. It’s free of charge and you can do it online. They are backlogged at the moment but they will get to you. First wrote a letter of complaint to the finance company, disputing. They have to issue a final response within 8 weeks. When they do (or if they haven’t within 8 weeks whichever is sooner) then lodge with the FOS online. I think you can get out of this. The FCA enforces a 14 day cooking off period. In the meantime continue to pay
I guess this is a learning experience. Don’t take on things you can’t afford.
Only advice would be to reduce spending and or increase earnings.
What is your take home pay?
Put more money into paying it off?
Sorry they sold the car and reduced the debt by £6? That doesn’t sound right it’s normal to have a shortfall but the car should eat up a chunk of the debt
Declare yourself bankrupt