We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 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!
Sounds good, but is it. Loan restructuring
Hi All,
Just a piece of advice if possible! I have 2 loans that I am currently paying off quite comfortably, no problems, but I have just bought a flat, so any drop in outgoings is welcome.
Well I thought I'd just get a loan quote to consolidate these two and see if it works out cheaper. Well, turns out to consolidate them, over the same time they have left is nearly £150 cheaper a month. Have I missed something here, or is it just that to consolidate them does make it cheaper?
Thanks for any help you can give
Just a piece of advice if possible! I have 2 loans that I am currently paying off quite comfortably, no problems, but I have just bought a flat, so any drop in outgoings is welcome.
Well I thought I'd just get a loan quote to consolidate these two and see if it works out cheaper. Well, turns out to consolidate them, over the same time they have left is nearly £150 cheaper a month. Have I missed something here, or is it just that to consolidate them does make it cheaper?
Thanks for any help you can give

0
Comments
-
hey wooderz
it all depends on APR. say for example the 2 loans u have atm are at 24.9 apr and the new loan your taking is at say 8.9 apr. if that is the case then yes jump on it thats why its cheaper. over the term your paying a lot less intrest
but if the apr is the same then it WILLNOT be cheaper and u will of made a mistake0 -
The APR on one of them is about half....I think when I took it it was 17% and the consolidation is 7.9. The other is about 1% cheaper...i.e it was 8.9.
One thing I thought about though, is the smaller of the two I'm consolidating would normally expire sooner than the consolidation. So yes it's cheaper now, but in 2 years when it would have finished it could then cost me again? I'm a little confused lol0 -
The APR on one of them is about half....I think when I took it it was 17% and the consolidation is 7.9. The other is about 1% cheaper...i.e it was 8.9.
One thing I thought about though, is the smaller of the two I'm consolidating would normally expire sooner than the consolidation. So yes it's cheaper now, but in 2 years when it would have finished it could then cost me again? I'm a little confused lol0 -
marshallka wrote: »Just a word of warning, have you requested the settlement figures here or have you calculated them yourself. You have to make sure you know the amount to settle them...
No I haven't got the settlement figures yet, I suppose that's worth doing, there aren't any penalties in just asking for the figure is there?0 -
No I haven't got the settlement figures yet, I suppose that's worth doing, there aren't any penalties in just asking for the figure is there?0
-
marshallka wrote: »Shouldn't be if they are fixed. Some companies (the really nasty sub primes ones) do put up interest rates when you ask just to keep you netted.
It's Egg and Beneficial Finance so I'm assuming they're not sub prime nasties?0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards