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Should I get a loan to pay off other debt?

*Kat*
*Kat* Posts: 1,829 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
in Loans
I'm considering getting a loan to pay off my car finance.

At the moment, I owe just under £7,000 for my car.

I am also looking to get Invisalign braces, which cost around £5,000. However, I can get finance for this too.

I'm not sure whether to take out a loan or just get the finance. Is it just down to the interest rates I can get? How do you decide if a loan is better than finance?

Thanks

Comments

  • slopemaster
    slopemaster Posts: 1,581 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    *Kat* wrote: »
    How do you decide if a loan is better than finance?

    The interest rate
  • andyfromotley
    andyfromotley Posts: 2,038 Forumite
    Or even better the TOTAL COSTS for each financial product on the terms offered. This will be in any written quote which they provide to you.
    £1000 Emergency fund No90 £1000/1000
    LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
    !
  • Caz3121
    Caz3121 Posts: 15,854 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    from your other thread, you are also in the process of buying a house so I would be very wary of taking on any additional finance until your purchase finalises. The mortgage lender will likely do final checks before releasing the funds so will flag that you have further commitments that could affect the affordability calculations
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