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Should I extend loan to make life easier?
Hi,
I current have a loan which was for a car which started at £6100 but according on online calculators is around £4200 now with 15 months left out of 24.
I also now share a house with someone unlike when I took the loan out and was living at home. Due to all the bill rises etc I can now only just pay everything and get left with very little at the end of the month.
I recently had an expensive mot so now I am £900 into my overdraft and don't have any spare money to chip away at this.
I do have a good credit rating and was thinking that it would make my life better if I was to take out a loan to replace my current one and then add on the overdraft amount and pay it over a slightly longer period. For example
£4200 on current loan
£900 overdraft
Total = £5100
Over 2 years is £230 a month
over 3 years is £160 a month
My thinking is that although I would be paying more interest extending the time would help me as not only would I have cleared my overdraft but I will also have lowered the amount I'm paying into the loan each month giving me some room to breath
What do you think?
Thanks
Chris
I current have a loan which was for a car which started at £6100 but according on online calculators is around £4200 now with 15 months left out of 24.
I also now share a house with someone unlike when I took the loan out and was living at home. Due to all the bill rises etc I can now only just pay everything and get left with very little at the end of the month.
I recently had an expensive mot so now I am £900 into my overdraft and don't have any spare money to chip away at this.
I do have a good credit rating and was thinking that it would make my life better if I was to take out a loan to replace my current one and then add on the overdraft amount and pay it over a slightly longer period. For example
£4200 on current loan
£900 overdraft
Total = £5100
Over 2 years is £230 a month
over 3 years is £160 a month
My thinking is that although I would be paying more interest extending the time would help me as not only would I have cleared my overdraft but I will also have lowered the amount I'm paying into the loan each month giving me some room to breath
What do you think?
Thanks
Chris
0
Comments
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Hi,
I current have a loan which was for a car which started at £6100 but according on online calculators is around £4200 now with 15 months left out of 24.
I also now share a house with someone unlike when I took the loan out and was living at home. Due to all the bill rises etc I can now only just pay everything and get left with very little at the end of the month.
I recently had an expensive mot so now I am £900 into my overdraft and don't have any spare money to chip away at this.
I do have a good credit rating and was thinking that it would make my life better if I was to take out a loan to replace my current one and then add on the overdraft amount and pay it over a slightly longer period. For example
£4200 on current loan
£900 overdraft
Total = £5100
Over 2 years is £230 a month
over 3 years is £160 a month
My thinking is that although I would be paying more interest extending the time would help me as not only would I have cleared my overdraft but I will also have lowered the amount I'm paying into the loan each month giving me some room to breath
What do you think?
Thanks
Chris
Have a good credit rating you say, have you looked at this ? Any defaults ?
Whats your salary ?0 -
Hi,
Yes good rating checked this and also came back as very good when checked for moving into this house. My salary is £18,0000 -
my bank have offered me loans before but I have always gotten a cheaper rate elsewhere. I have gotten my finances down to just the bare minimum going out, so no luxuries such as Sky etc Ta0
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all my house bills, running car(needed), current loan uses nearly all my monthly incoming. I also just had a car bill for £9000
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£500 was a short while ago when the roof of my car which is all glass decided to shatter into 1000 pieces. Thats was the cheapest price so garage bill was £300 and something which wasn't a bad price0
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£500 was a short while ago when the roof of my car which is all glass decided to shatter into 1000 pieces. Thats was the cheapest price so garage bill was £300 and something which wasn't a bad price
Sorry for the questions. If your sure you can get a loan which is £160 a month then go for it if you can get a decent apr.0
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