Loan help... Please!

fgw55_2

Afternoon all,

First post - please go easy!

About 18 months ago I got a fairly substantial graduate loan which allowed me to buy a new car with my bank - Lloyds. I have today switched up my current account to First Direct leaving the only thing open with Lloyds as the actual loan. I have about £5k left to pay on the graduate loan - monthly repayments of £223 and about 30 months left.

What I am wondering is if there is a way to pay off the loan by shifting the debt elsewhere with a lower interest. Currently, with Lloyds, it is about 8.9%.

Again, I am not sure if this is even possible as I am very new to anything like this.

Any help greatly appreciated,

Thanks in advance...

tonyh66

£223 @ 30mths = £6690, nothing stopping you moving the loan if you have the income to repay and a decent credit history to be approved for a new loan.

fgw55_2

So I can use a new loan to pay off an old one?!

Again, apologies if this incredibly basic - I'm still learning!

MFWannabe

If you are thinking of paying off your current loan you will also need to check if there are any charges for paying off early as this may mean its not worth paying it off.
Also if you are looking for another loan then it may work out cheaper to have a 0% interest free credit card over a long term; but one that allows money to be deposited into your bank account to enable you to pay off a loan as a credit card won't transfer money to a loan company

National_Debtline

Hi fgw55 and welcome to the forum.


Another thing to bear in mind if seeking a loan to pay off the existing one - you will normally be assessed as if you are trying to service both loans, rather than just the new one. The new lender may be aware of your intentions but can't oblige you to pay off the old loan with its advance, so has to risk-assess you accordingly.


Also, remember that the headline rate you see advertised for loans won't necessarily be the rate you are offered, if approved.


Dennis
@natdebtline

fgw55_2

Thanks all - I really appreciate you taking the time to get back to me.

Am I correct in thinking that my best bet at this stage would be to get a Credit Card where I could do a suitable money transfer allowing me to clear my loan with Lloyds and then repay the loan on a monthly basis. My £223 per month would go a lot further with no interest!

Clive_Woody

fgw55 wrote: »

Thanks all - I really appreciate you taking the time to get back to me.

Am I correct in thinking that my best bet at this stage would be to get a Credit Card where I could do a suitable money transfer allowing me to clear my loan with Lloyds and then repay the loan on a monthly basis. My £223 per month would go a lot further with no interest!

This would be assuming that you can find a credit card that offers 0% interest, allows balance transfer to pay the loan and would offer you a high enough credit limit to pay the loan off..

Have you considered paying extra each month on the loan (if T&Cs allow) to pay it off early and save on interest?