Add to loan or take out a new one?

skea56

Hi all

Just asking for advice on a loan requirement I have.

I took out a £10k cu loan a few years ago and am down to the last £2500 left on it. I wish to make a new purchase at a cost of approx £2500 and wondered what would be the best way to do this?

Is it simply a case of increasing the loan amount or would this confuse the issue of interest etc? The alternative is that my dad has offered to take one out in his name and I'll pay it back. I would prefer to stay with the cu as they are more flexible with overpayments etc...plus the fact my bank is impossible to get parked near lol.

Thx
sk56

YorkshireBoy

Why not use your savings (assuming your signature is accurate)?

Foxy-Stoat_3

You already owe your Dad money, don't ask him to lend MORE money to you !!!

dealer_wins

You are a banks dream customer!

skea56

Thanks all for your replies.

In response to your questions -
-my dad offered I didnt ask lol!
-it actually works out cheaper to get a loan out than to use my savings (which does need updating thanks for the reminder)


Think I'm going to add to the current loan - called in on Fri and it would be no bother to add it - it actually decreases the monthly payment by over £100 as they have extended the loan period to 2018 - but if I keep paying the same amount I was, I'll have the whole lot paid off in 15 months.

Thanks again everyone
sk56

PeacefulWaters

it actually works out cheaper to get a loan out than to use my savings

How?

What rate is the loan at? What rate are your savings earning?

CLAPTON

skea56 wrote: »

Thanks all for your replies.

In response to your questions -
-my dad offered I didnt ask lol!
-it actually works out cheaper to get a loan out than to use my savings (which does need updating thanks for the reminder)


Think I'm going to add to the current loan - called in on Fri and it would be no bother to add it - it actually decreases the monthly payment by over £100 as they have extended the loan period to 2018 - but if I keep paying the same amount I was, I'll have the whole lot paid off in 15 months.

Thanks again everyone
sk56

how does a loan work out cheaper than using your savings?

dealer_wins

NormaHanrahan wrote: »

I think this is not good for you. You had already taken a loan and that was not completed yet. Then why do do want to take more burden on you?

Spammy the spammer