Loan APR Question

FarmerFitzy_2

Hey all,

Need a bit of advice here. I'm after a personal loan to consolidate my existing debts.

I need to borrow £4500. If i borrow that about company's are giving me around 15-20% APR. Whereas if i borrow £5000 the APR is about 9%. So technically will i be paying less for the £5000 loan? Or have I missed something here.

Thanks

Robert_Sterling_3

IF things are as you say they are then borrow £5,000.

maydledoodle

Wouldn't borrow at all! Why not write to creditors with a payment plan you can manage, include an inc/exp and you might find they are quite reasonable. Also think seriously about how you could manage affairs to keep within your income limits. Free debt advice organisations can do this on your behalf. Borrowing from Peter to pay Paul is not as rosy as it may seem.
Best of luck

CLAPTON

maydledoodle wrote: »

Wouldn't borrow at all! Why not write to creditors with a payment plan you can manage, include an inc/exp and you might find they are quite reasonable. Also think seriously about how you could manage affairs to keep within your income limits. Free debt advice organisations can do this on your behalf. Borrowing from Peter to pay Paul is not as rosy as it may seem.
Best of luck

You may well be right but before giving advice to default on loans, have one's credit record trashed for 6 years, making it impossible to get loans and making remortgaging very expensive, one ought to ask for full financial info first.

FarmerFitzy_2

My credit record is fine. Just want to clear my credit card and my current loan is quite expensive, i did'nt shop around at the time.

nomoneytoday

You need to get the monthly payments for both the £4500 and £5000 loans, and then look at the total repayments for them

maydledoodle

Fair Point Clapton. One should never assume!

M