Loan v current car loan

Fabulouso

Hello,
I'm trying to clear up my credit and am wondering if anyone could give me a little advice?

I currently have a car loan, the payments are due to end on the 26/7/21. I pay £106 per month.
I just got a settlement figure for £3572. (I've had it for a year now)

I was thinking of getting a loan of £4000. Over four years, to pay off the car loan and settle a different account. It would be £100 per month over 4 years.

It seems much of a muchness. Is it worth doing do you think of am I creating more paperwork for myself?

[Deleted User]

What are the rates?

Who's offered you the second loan?

Fabulouso

Admiral, they haven't offered me it as yet. I was looking out of curiosity. Total interest would be £822?

[Deleted User]

What are the rates?

System

So you're wanting to consolidate debts which if you look on the DFW board very rarely ends up going well and is just digging a deeper hole. A loan for £4000 after paying off the car loan suggests the other debt to be around £400-£500 or £400-£500 more that you'd need to put towards clearing it? Seems daft to get a loan and pay four years interest on an amount that could be cleared with a couple of months of ultra-frugal living.

fatbelly

Fabulouso wrote: »

. I pay £106 per month.
I just got a settlement figure for £3572. (I've had it for a year now)

I was thinking of getting a loan of £4000. Over four years, to pay off the car loan and settle a different account. It would be £100 per month over 4 years.

It seems much of a muchness. Is it worth doing do you think of am I creating more paperwork for myself?

It doesn't sound like a lot of advantage. You might be better going for a Virgin card and doing a money transfer at 0% (with a one-off fee, think it's around 3% depending on the deal) in to your bank account