Pay off half of our loan and get a better deal?

Sailor-Stan

Hi, I have got a 13k loan at 9% APR over 5 years. I am about to get a windfall of 6k. Here is my Question:

Do I:

a - Save the 6k until the loan is reduced to that amount (approx 3 yrs) and then pay off the loan?

b - Try to get a new loan for a lower amount and lower APR and use that plus the 6k to consolidate the existing loan??

Not really sure which is the cheapest option to take and could really do with some advice.

Many thanks

Tixy

I wouldn;t do a.

A better option than a would be to pay the £6k off the loan now, which will save you in interest you need to pay.

You could then either keep paying the loan at what is a fairly competative rate. Or at that point you could consider having a look to see if you could get a slightly cheaper loan to pay off the remainder.