2 loans into 1??

froogle_freak

Hello,

Between me and my partner we have to loans, one which was originally £6000 or £7000 and now has just over £4000 remaining which is on a 15% rate (my partner took this out when he was younger and didn't look at good rates etc just wanted the money!) and we have a £6000 loan which we took out 1 year ago on a rate of roughly 9%. We pay £146 a month for the first one and £131 a month for the second one.

What my query is is it possible for us to maybe take an extra £4000 out on the second cheaper rate loan to pay off the more expensive one? - would that knock the £4000 remaining down because we would pay less interest on it for the last 2 years or so? although it would be spread over a longer time presumably because the other loan has 4 or 5 years left on it so might actually cost more. It would mean only one monthly sum comes out the account, would it be less each month?

Or alternativly would it be better to try and find say a new £4000 loan spread over 2 or 3 years to pa it off with? or maybe just leave the whole thing how it is already?

The reason I am asking is because I am on a mission to cut our monthly spending and this seems like one area I may possibly be able to save some money but I do need some guidance as I am not sure what to do for the best!

Any advice will be appreciated!

Thanks,

AC

[Deleted User]

you may cut your monthly outlay but on probably all the options the long term will be paying more in interest