Loan - no brainer - I think ?

lulu41_2

my partner has 2 loans and a credit card debt that his bank is offering to consolidate into a loan over a shorter period of time ie. was 8 years now 5 years - which means in effect that he will be saving £12,000 of interest and reducing the loan by 3 years - he is asking should I do this - his bank is LLoyds TSB - can anyone see any reason why this would be a bad move I cant - the payments are roughly the same as what is his is already paying - not a secured loan :rotfl:

Rafter

lulu,

The question is, could your partner do even better by getting a best buy loan elsewhere.

Without understanding the rates and balances on the cards and different loans it is impossible to say.

As you say, it looks like a no brainer. Make sure he doesn't opt for payment protection (he can buy the same cover much cheaper elsewhere). Also make sure there aren't any nasty early repayment penalties or set up costs. Their shouldn't be because it is an unsecured loan regulated by law.

R.

CLAPTON

best to post up the full debts details and those of Lloyds offer

homer_j_3

also, you would have to effectively cancel the credit cards or put to a really low credit limit to stop the debts accruing back up on the cards.

fatbelly

And if his credit rating is Ok he should be able to transfer the cc balance to a 0% deal - see https://www.stoozing.com for the latest deals.