We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Taking out Sainsbury's loan to pay off NatWest loan - a good idea?
I'm looking for advice on whether the following is a good plan.
I currently have a loan with NatWest, originally for 25k over 7 years at 7.8%. There are currently 64 months left to run and the settlement figure is £20,486.58.
I have today applied, and been accepted for a Sainsbury's loan for £20k over 60 months at 6.5% (I have the other £486 to pay off the NW loan).
So instead of 64 payments of £386.86 I will now pay 60 payments of £391.63, saving £1261.24 in all.
The paperwork is on its way for me to sign - can anyone see any faults in this scheme?
The penalty for paying early is the same as the NW loan - two months interest.
And I get 5,000 nectar points.
I'd be really grateful for any advice on whether this is a good idea or not.
I currently have a loan with NatWest, originally for 25k over 7 years at 7.8%. There are currently 64 months left to run and the settlement figure is £20,486.58.
I have today applied, and been accepted for a Sainsbury's loan for £20k over 60 months at 6.5% (I have the other £486 to pay off the NW loan).
So instead of 64 payments of £386.86 I will now pay 60 payments of £391.63, saving £1261.24 in all.
The paperwork is on its way for me to sign - can anyone see any faults in this scheme?
The penalty for paying early is the same as the NW loan - two months interest.
And I get 5,000 nectar points.
I'd be really grateful for any advice on whether this is a good idea or not.
Total debt: 1 January 2007 £[strike]49,387.79[/strike] 1 January 2012 £[STRIKE]19,312.85[/STRIKE] 1 August 2012 £11,517.62
0
Comments
-
great idea! Does the S'burys loan allow overpayments?Starting debt @ LBM: £8436.51 (8/5/7)
Barclaycard: £5804.52 (May 07) - 6.9% LOB Now: £5315.25
Egg: £1640.99 (May 07) - 1.9% May 08 - Now: £1242.69
[strike]Barclays O/D: £991dr (May 07) - 16.9% - Now: £0.00[/strike]
Debt August 07 £6557.94
Aim: To Clear Barclays OD by Nov 2007! Realistic DFD: August 20090 -
I don't think so - but I've got plenty of other debts to pay off alongside....Total debt: 1 January 2007 £[strike]49,387.79[/strike] 1 January 2012 £[STRIKE]19,312.85[/STRIKE] 1 August 2012 £11,517.620
-
Bumping just in case anyone has any comments. The paperwork for the Sainsbury's loan has just landed on my doormat and I'm going to read it carefully before sending back.Total debt: 1 January 2007 £[strike]49,387.79[/strike] 1 January 2012 £[STRIKE]19,312.85[/STRIKE] 1 August 2012 £11,517.620
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards