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Hi, just after some advice

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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?

Comments

  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Yes you can.
    :p
  • cheers, i thought so =]
  • Kavanne
    Kavanne Posts: 5,093 Forumite
    cheers, i thought so =]
    You can but of course you will need to apply and you may or may not be eligible for the extra borrowing. Only barclays can tell you though obviously :)
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

  • 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!
  • 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...
  • 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.
  • 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.
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