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Should I pay loan off

postdiver
postdiver Posts: 1 Newbie
in Loans
I have a loan of 5.8% for another 6 years with a balance of £15,652.00 if I pay off today it will be £13,546.00
I can get another loan for £13,000.00 at 8.9% for 2 years
Is it better to pay off with new loan or make extra payments to old loan Thanks:confused:

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    assuming you are allowed to make overpayments then paying interest of 5.8% seems a lot better than paying at 8.9%
This discussion has been closed.
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