We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Hi, just after some advice
Options

RichardFrost
Posts: 3 Newbie
in Loans
i dont know a hell of alot about banking and all the terms and things
i have an outstanding loan with barclays for about 3k(ish) left to go.
what i need to do is get another loan so i can buy some equipment to start a small business for myself but im unsure if i can get another loan with barclays, pay off the existing with that and use what's left over for my own evil doings
my mum seems to think you cant pay a loan off with another loan, so im a bit confused.. i didnt think it would be a problem really seeing as the bank would be collecting 2 amounts of interest on some of the original loan i have
i cant afford to pay 2 loan repayments a month and i need a few thousand to buy this equipment..
so my question is, can i get a loan to pay of my existing one and keep the difference?
i have an outstanding loan with barclays for about 3k(ish) left to go.
what i need to do is get another loan so i can buy some equipment to start a small business for myself but im unsure if i can get another loan with barclays, pay off the existing with that and use what's left over for my own evil doings
my mum seems to think you cant pay a loan off with another loan, so im a bit confused.. i didnt think it would be a problem really seeing as the bank would be collecting 2 amounts of interest on some of the original loan i have
i cant afford to pay 2 loan repayments a month and i need a few thousand to buy this equipment..
so my question is, can i get a loan to pay of my existing one and keep the difference?
0
Comments
-
Yes you can.
0 -
cheers, i thought so =]0
-
RichardFrost wrote: »cheers, i thought so =]Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
you can but really watch the APR figure on the second loan. I'd bet a huge wedge of cash on the fact that you'll be paying way more than just getting a small second loan for your new needs.
I did this a while back and to cut a short story short I took out a "extra" loan for £4,000 ( £16,000 loan to cover £12,000 existing plus £4,000 for me)and am paying an extra £6,500 interest on that £4,000 (total £10,500) if I'd just got a smaller loan the interest would have been <£2,000.
Don't rely on the banks to give impartial advice either...Debts:
Halifax Loan: [strike]£16,000 [/strike]£0 - Halifax CC [strike]£9,500[/strike] £0 - Total = [strike]£25,500[/strike] £0
Upcoming Events:
Child Number 4 in Jan 2012!0 -
i guess i can look on barclays website but im sure you nice people can explain it to me in a way that's easier to understand!
what are the advantages of having a business loan compared to a personal loan?
oh, i suppose i cant get a business loan and use some of that to pay of the last 3k of my personal loan can i.. hmmmm...0 -
Hi. I used to be a manager of one of the high street banks so I'll tell you as much as I can.
1) Yes, you can repay a loan with another loan;
2) The interest rate differs depending on how much you borrow usually so therefore the more you borrow, the lower the rate. Although if it's a while since you took out your last loan then the rates may have changed a lot since;
3) Check how much it will cost you to repay your old loan as normally you are charged an 'interest recalculation' and it may work out a little expensive;
4) Also, speak to your business manager about taking out a business loan as I don't think you can combine your personal loan with it becuase then you are combining business with personal;
5) On the otherhand if you try and take a personal loan for business purposes then they may decline that also.
I know that probably makes no sense to anybody else but it does in my mind. Ha ha.0 -
I know everybodys advice is different but if I were you I would take out a larger loan to repay my old loan plus the new money. The reason for the loan would be to buy a new car or something (not for business reasons) so they couldn't decline you for that purpose. Or speak to a business manager about a business loan but I think they can be more strict than the personl side of things.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards