Loan Help

jj_5

Hi,

Currently owe around £4,000 to Lloyds where the interest rate is 17% . Ive heard a lot, especially on here about 6%/7% loans etc. would I in any way be saving money by taking out a new loan to pay off this one??? Just trying to get it paid off as quickly as I can.

My monthly payments are around £190 but I make a massive number of overpayments when I can. (Last month paid off about £600)

Would appreciate any help i can get want this debt GONE!!!

King_Of_Bling

jj_5 wrote: »

Hi,

Currently owe around £4,000 to Lloyds where the interest rate is 17% . Ive heard a lot, especially on here about 6%/7% loans etc. would I in any way be saving money by taking out a new loan to pay off this one???

The headline loan rate is not offered to everyone that applies. Can depend on your credit rating, size of loan and the length of time it is taken for.

Tixy

You'd probably save money if you could get accepted for a loan as cheap as those you quote. You'll need to know what the settlement penalty is for this loan for settling early. If you can continue to overpay by so much every month and pay the whole thing off in 7months or so then the overall savings might be minimal.

Not sure the rates for loans of £4k tend to be quite that low - I think the best buys for that sort of amount tend to be a representative APR of 10% or so. Plus those loan rates are only the representative rates and so are only given to 51% of successful applicants, other successful applicants will be given higher APRs and lots of people are of course turned down altogether.