help with colsolidation loan

sahra

Hi, I've got a few debts and am trying to work out the best way to pay them off and would be grateful for some advice

I have a Natwest loan: £3251.91 ending April 2013 monthly payment £110

Natwest loan: £1214.10 ending in 10 months monthly payment £121.41

HSBC credit card £676.98 paying minimum each month £18

M&S credit Card £2913.34 paying minimum each month £75

Total each month £324.41


I am able to get a loan of £8000 at 6.5% (perk through work) to consolidate everything paying £244.50 per month for 3 years, obviously saving per month.
Should I consolidate the loan finishing the soonest or carry on paying it til the 10 months are up?


Thank you

woody01

Depends on what you earn.
You may not even get another loan.

sahra

Assuming I was accepted a loan, I was just asking for advice on what was the best option. To consolidate everything or keep the 10 month loan seperate.
Thanks

CLAPTON

depends upon the APRs of the loans

sahra

the natwest loans are 12.9%

CLAPTON

it's not worth paying off the small loan as you will pay more interest over the 36 month than you will in 10 even though the interest rate is lower for the 36 month loan

sahra

CLAPTON wrote: »

it's not worth paying off the small loan as you will pay more interest over the 36 month than you will in 10 even though the interest rate is lower for the 36 month loan

Thank you, thats what I wanted to know.