Which Loan???

inneeedofhelpdude

Hello,

I was hoping to get some quick advice as i cant seem to do the calculations myself!

I have 25k in debt! The loan is linked to the bank of england base rate and i currently pay interest at 3.5%. My monthly repayments are set at £345.00 per month until its conclusion. The monthly amount can not be changed, the term alters with the rate of interest.

Now, I want to pay more off each month, I can afford to pay at a rate of £1,000 per month. should I get a personal loan at a rate of 8% and set repayments of £1,000.00 per month??

Which would work out cheaper!! Thanks for any advice!!

Mischa

You've lost me! ;-) You can't pay off more than £345 a month, but can afford to pay £1000. Why do you need a personal loan then? If the monthly amount is set, then what's the question, exactly?

Typhoon2000

Stick with the original loan as you wont find a better rate, save up the spare £655 you have and pay it all off in a lump some when you have enough.

inneeedofhelpdude

Mischa wrote: »

You've lost me! ;-) You can't pay off more than £345 a month, but can afford to pay £1000. Why do you need a personal loan then? If the monthly amount is set, then what's the question, exactly?

Sorry, I want to pay off the 25k asap! the current loan has set repayments of £345.00 which I am not allowed to alter. I can only pay the whole amount.

Basically my question was should i get another loan and pay off the 25k but at a higher % rate but pay a lot more each month??