Personal Loan Help

Edi456

I have been approved for a £3500 personal loan which is to be repaid over 36 months at 24.90 APR.

The monthly repayments are around £135.

I haven't signed the agreement yet as I am having second thoughts.

Are there any cheaper ways to clear £3500 worth of debt as if I agree to this loan I will end up paying around £4.8k over 3 years.

Thanks in advance for your help

maas

You could look into a Credit Card with Money Transfer option. Try to find one close to 3 years no interest charges, but you will pay the one-off transfer fee. There are eligibility checks on this website you can use.

Edi456

Thanks for your reply.

I've used the eligibility checker and it says that I am 95% likely to be approved.

Sorry if I'm being stupid but it doesn't tell me anywhere what the limit would be on the card so I don't know if the limit would cover my current debt.

Any ideas on how to find the limit?

Willing2Learn

You only ever find out the limit when the application is finished and you have been accepted.

foxy-stoat

What is the current interest rate as 24% + isnt very good rate.

Try to apply for a MT or BT card.

System

As above. If the interest rate on the new finance is higher than the current interest rate there's no point. If it is on credit cards balance transfer is an option, if not then cards that will allow you to do a money transfer to your bank are. Even if you apply and don't get the £3500 then even what you do get will be worthwhile applying to that debt to reduce the overall interest.

Don't forget if you get a 0% card to cut it up once you've done the balance transfer and set up direct debits at an amount that'll clear the balance by the end of the 0% deal.

Dobbibill

Where is your current debt?
If it's on Credit Cards, you could look at a BT Card. If it's elsewhere like an overdraft, you could check out MT cards.

Maybe head over to the DFW board and post a SOA. The good friendly posters here may be able to see savings you can make in your budget to throw additional funds at the debt.

Here's the link for the SOA (statement of affairs)
http://www.stoozing.com/calculator/soa.php