Should I shuffle my loans?

BrianC_3

Hi all,

First off thanks to the many posters who have made this forum so handy, I've already saved lots of money by the advice on here. Cheers!

My situation is that I have 3 loans that I'm thinking about reshuffling.

2 Lloyds TSB graduate loans:
£4000 borrowed at 8.4% over 60 months
48 months left - £81.37 p/m - £3905 left total payable if I stay
Early settlement £3377.98

£6000 borrowed at %7.8 over 48 months
30 months left - £171.99 p/m - £5159.70 left total payable if I stay
Early settlement £4471.44

Cahoot flexible loan
£10,000 borrowed at 6.9%.

My question is, should I pay the 2 Lloyds Graduate loans off and extend my cahoot limit to £18,000? I pay for protection on the second, larger graduate loan which I'd like to get rid of (don't need any more and they won't let me cancel) and I'm thinking one loan at a better rate would work out cheaper as well as being much more manageable.

If this isn't the best option, which loan should I target to pay off first?

Unfortunately I have no idea how to work all this out, can anyone lend a hand please? Which is going to be the best option for me? 0% Credit cards aren't an option for me sadly!

Many thanks,

Brian Combes

Rafter

Brian,

You are right with your approach - better to borrow at a lower rate and without insurance and with the length of time your loans have to run, you will probably more than recover any early settlement fees on your graduate loan.

Don't be tempted to take out the cahoot loan over a longer period than your existing loans though. It may help your cashflow in the short term - but you will end up paying more interest overall.

Good luck.

R.

CLAPTON

my calculator says that for the first loan it make no significant difference

but it's better to transfer the second one ...it saves about £200
but do your own calculations