Consolodation of debt - include student loan?

VictoriaVix

Hi, I am looking to consolodate my current debt but not sure whether to include my student loan...

I currently pay about £200 per month on student loan
And £200 on bank loan (1.5 year left)
And a further £100-200 on credit card (to be paid off in 4-6 months).

If I consolodate them all to pay about £200-300 per month it would make my monthly payments easier... however I am not sure it wise to move my student loan..?

Any advice would be hugely apreciated, many thanks! :-)

HappyMJ

What student loan is this? The government one should never be refinanced.

If private loan then what's the interest rate.

mildredalien

It is very unwise to refinance a government student loan, as these only require repayment when you are earning over a certain amount. If you refinance you just have to pay it back whatever happens (and possibly at a higher interest rate).

[Deleted User]

Over what period would the new loan run?

VictoriaVix

Yes it is a government loan, I thought as much.
Had a good think & will just keep scrimping away to write off my current loan & credit card... which will hopefuly all be paid off by next September.

Thanks for your advice

[Deleted User]

I think you have made the right decision.

You say the CCs will be paid off in 4-6 months, after which you will be down to £400pm.

It wouldn't make sense, to take out a £300pm loan, which would presumably last far longer, than the year and a half left to run on your existing loan.

Allypops

VictoriaVix wrote: »

Yes it is a government loan, I thought as much.
Had a good think & will just keep scrimping away to write off my current loan & credit card... which will hopefuly all be paid off by next September.

Thanks for your advice

Very wise choice.

vics199

The interest on student loans is so low that it isn't really worth paying off more than you need to. Pay all the others off and then have a think about it again. You may be better off continuing to pay the monthly amount required off your student loan and then putting what money you can into an ISA to save for example for a house depoist. This is what my boyfriend does who is an accountant. If you look at my signature you will note I have not been so sensible with money but hope to be clear of debt and saving in the future! I have a student loan and don't plan to overpay it. Last year I only paid about £80 interest in the whole year.