Loan help please

Mark_petty

Hi

I'm looking to get a loan of about £5k - 6k for a new car.
I'm going to receive some money next year about £2.5k. What I want to do is get a loan where you can pay it off quicker.

Will I be charged if I do this?

I want the monthly amount to be as low as possible but if needed I can pay more in to it, I probably will get a longer term to reduce the payments but hopefully have the option to pay it off asap.

Can anyone give me any advise as I don't know a lot about loans and also where is a good place to get a loan, luckily I have a good credit rating.

Thanks in advance

mountainofdebt

I would go for a loan where you can over pay if you so wish.

I think the traditional type of loan will only let you settle early for which you get hit by the rule of 78 (yes I didn't know that until a few weeks ago either!)

Try Cahoot - they tend to be very good.

Martinslovechild

The other option is to put £2500 on a 0% card for 9 months and source a loan for £3500.

Better still - apply for a credit card offering 0% on purchases for 12 months (e.g. Sainsbury's). Make the £6000 purchase, then make at least the minimum payments over the course of the year (2% on Sainsbury's card = £120 initially). Even better - if you can afford more each month, then do so.

After 12 months, approximately £1300 will be repaid if you pay only the minimum payments. Then pay the £2500 off as soon as you receive it.

This will leave you with a balance of approximately £2200 (£6000 minus £1300 minus £2500) which you could then move to another 0% card for another 9 months, or apply for a loan at that point.