Professional and Career development loan advice

dragonballz3

hi there - I have now completed my MA - due to start paying back my CDL in October at a rate of 3.2%. I borrowed £10,000 and was due to pay back £321.87 per month for 36 months (in total, paying back £11,587.32).

I applied for a M&S loan yesterday to see if I could reduce that a bit and was offered 3% over 5 years (advertised at 2.8%)- So, paying back £191.70 over 5 years, in total paying back £11,502.00.

This is preferable as it feels more comfortable per month to be paying the smaller amount off. However, I just wondered, as my salary is about to go up next month, is it worth trying for another loan in a month's time? Is it likely I'll just get offered the same amount? or will it be even more because of a change in my credit rating. I wasn't too sure why I was offered the higher rate in the first place!

Anyway, would really love some advice - I'm not too sure how this all works. Thank you.

[Deleted User]

The difference between 2.8% and 3% does amount to much, you are unlikely to be offered another loan with £10k of debt outstanding, at least not at a sensible rate. My advice would be to pay off your existing loan and be debt free in 3 years,.

dragonballz3

Thanks. I think that would be best, but the monthly payments of £321 per month for 3 years is too high for me at the moment, so I guess the most sensible option would be to take the 5 year loan at 3%. Did you mean the difference between between 2.8 and 3% *doesn't* amount to much?