Best option?

Mr_Average_3

I have £5,500 outstanding on a unsecured loan costing me £215.00 a month (about two and a half years left to pay), £5,000 on a credit card costing me about £140.00 a month and an overdraft of about £1,500. I also desperatly need a new(ish) car. I am looking at a loan of £20,000 to consolidate my debt and give me something to get a car with. A Northern Rock loan over 6 years (5.6%) is going to cost me about £326 a month(no loan protection) I have also visited my mortgage provider, Yorkshire Building Society, they are offering a "product" at 4.99% fixed for 5 years at about £312 a month plus about £8.00 a month Life cover, then 14 months at their variable rate (this product would then end at the same time as my mortgage). I appreciate what people say about "secured" loans but I was concerned about what would happen if I slipped off the mortal coil, the payment protection with the unsecured loan is way too expensive, but with the secured loan the life cover will pay it off so my family isn't lumbered with the debt. Is this the best option or does anyone have any ideas on a cheaper way of doing it?

Mr_Average_3

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Catch_A_Fire

You should try if possible not to prolong the life of the debt. The longer you have the debt the more money you will spend servicing it. Don't choose the secured option simply because of the life cover, there are many suppliers who will sell you insurance separately from the loan.