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Pay Off Loan VS Top Up

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Comments

  • debtcutter
    debtcutter Posts: 228 Forumite
    What amount are you looking to get, this time?

    A rate of 13% for a loan of £5K or under isn't that bad at all. It's actually quite good.

    Most advertised rates of <7% tend to be for perfect customers, on high incomes, borrowing >£10K (or at least over £7500)
    From £8,800 to £2,200 in 2 years.

    Nearly there, just the 0% credit card to go!
  • DutchJohnson81
    DutchJohnson81 Posts: 10 Forumite
    Oh, is that right? The lady at the time apologised for the rate haha. It's an £8000 loan with just over 5 to pay. Which as I said I'd pay off next spring. Looking to top up another £5k and use the £5k il have in cash OR pay off and go for a £10k loan. Will paying it off be better than topping up in your opinion, debtcutter?

    Thanks.
  • dacouch
    dacouch Posts: 21,636 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Good on you Dutch for your tour, hope you and your colleagues get home safe.

    Enjoy your all wages when you get back, you've earned them
  • DutchJohnson81
    DutchJohnson81 Posts: 10 Forumite
    Cheers buddy! Appreciate that.

    R
  • tell_it_how_it_is
    tell_it_how_it_is Posts: 555 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 21 November 2012 at 8:41AM
    If I'm reading it right, you'll have paid your loan off AND have £5k free? If so, why not buy a decent cheaper car for around £5k, and not bother with a loan?

    It'll certainly be helpful for when you start looking for your mortgage, as the more deposit you have collected for that the better. A bigger car can then be considered (or not) later on.
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • DutchJohnson81
    DutchJohnson81 Posts: 10 Forumite
    TIHII, certainly appreciate the voice of reason on this. Lets call it a little treat for if I get back ok. Cheers though.
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