ooppps

kraft_2

I know I know, i have gone and done the "C" word (consolidate), but hear me out!!!!.

I took my loans and rolled them up into a loan that runs along side the mortgage at 7.3%, and cos it goes for the same length as the mortgage it takes the payment down to £177 pm, the loans were costing me £1049 pm.

What i intend to do, is pay the loan at £177pm and then add 177 of my money and put £1049 into a high interest savings account, and then after 2 years have this loan paid. This way i am debt free (sort of) right now and can breath a little and in 2 years have the loan against the house paid.

Have i done the right thing, it feels like i have!..

Rain_is_Insane

Usually I would never suggest consolodating anything as the interest alone can double the amount owed.

The only advice I can give is I would double check that this loan has no early payment clauses. You could find yourself paying off the loan with your 2 years of savings then still having a whacking amount left to pay off !

poppy_f1

if the sums work out and you dont get any more debt then its the right thing

i recently kinda consolidated, i needed to get a newer car so took a loan over 2 years with 2k more (slightly lower interst rate than just a 3k loan - borrowed 5in total) cleared the 2k off the cards - closed 1 of them and owe 400 on the other one im planning on closing (bought loads of ciggies abroad last week saves me money in the long run even with interest charges) once i have it cleared off

kraft_2

No, there is no early repayment charge and can pay off in bulk payments or overpay, its quite flexible as long as it happens before my mortgage renewel date which is in 2 years time.

Another thing, is i have to be totallly strict with myself and make sure i pay into the savings account. This is where i could go wrong and take out more debt and mess things up.