Newbie Needs Advise!

moz_miller

Hi All, long time reader, first time poster.

SO heres the deal - I got myself into some debt at Uni - credit card a few times and panicked and took out loans ... twice.

So now i have:

Loan one - Left to pay £3800 - i pay £105 a month. (Can pay off early for £3100)

Loan two - Left to pay £1800 - I pay £65 a month. (not sure if i can pay this off early yet.)

I reckon i could get a loan from money back bank for £5000 over 4 years for £120 a month saving me about £50. What are your guys views on this? Am i right in thinking that this is a good idea?

Thanks for any advise!!

Moz

~Beanie~

It's not usually a good idea to get a loan to repay other loans.

You may be saving £50 on repayments on a monthly basis but could end up paying far more in total.

How long is left on the two loans you have? What are the interest rates on your current loans and what rate would you be able to get for a new loan?

moz_miller

Hi,

Thanks for the quick reply.

Loan one - (£3800) About 17% 3 years left aprox
Loan two - (£1800) About 9% 2 years left aprox

New rate 8%