Should I convert to a fixed cahoot loan?

jenevieve

Hi everyone,
Just wanted to ask advice really. Am making 2006 the year I finally make major inroads into my debts. Have already saved over £70 on my car insurance, have changed my mobile phone and will save over £150 a year on my bills......... and now I get to my point :rolleyes:

I have a cahoot flexible loan for £6000 - currently paying approx £120 per month off. (APR 8.5%)
I can change to a fixed loan at APR 5.6% and am considering getting £8000 (monthly payment of £130) and using the extra to clear an overdraft.

What do you think? Worthwhile?

Thanks for reading,

Jenevieve

magentadreamer

Personally I'd go for the fix rate loan over the shortest possible time period and at rates you know you'll be able to afford and hopefully free up money for other debts.

jenevieve

Thanks magentadreamer,
I think that's a good idea. I am only paying minimum repayments on the flexible loan at the moment and it doesn't seem to be going down at all!
At least with the fixed loan I am getting a much better APR and will know exactly when I have paid it all off.

magentadreamer

I'd be no good with a flexi loan as I'd do min payments with a fix term at least you know that at some stage it's going to be paid off. I'm assuming Cahoot would let you repay early if you were able to without charging you a redemption fee?