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'When borrowing £1 costs £600.' Blog discussion

This is the discussion to link on the back of Martin's 'When borrowing £1 costs £600' blog. Please read the blog first, and then click reply to discuss.

Comments

  • This happened to me when I took out my pre-LBM loan.... the APR was 12.9% for the amount I wanted, but 6.9% for an extra £500 over the same term... It cost me less per month to have the extra £500 @ 6.9%, so I saved on interest too
    'We are all in the gutter, but some of us are looking at the stars' - Oscar Wilde
  • ANDENA
    ANDENA Posts: 120 Forumite
    i can better that hsbc managed loan £11,200 till 2016 i will of paid over £23,000 how can they get away with it.
  • lswwong
    lswwong Posts: 407 Forumite
    Wow! Quite an eye opener. Of course the sums are right and why didn't I think of it? Thanks Martin & MSE. I am currently considering raising finance for home improvements and this tip has come in handy. Think the trick is to borrow just the higher amount to benefit from the much lower APR. I will now remember to work out the total repayable sum first over the term as a benchmark.
This discussion has been closed.
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