We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Credit union loans

Hi, I'm just wondering if £50 per month in interest is too much on a loan of £1700? I'm terrible with money, but thought credit unions had lower interest rates.

Thanks

Amanda.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 23 September 2020 at 11:34AM
    Assuming that the first month's interest, it's an APR in the mid 30s.

    It's only too much if you have better alternatives, which you probably don't. Like everyone else, credit unions have to price for risk. 

    Is not borrowing at all an option?
  • It's is, but I thought that it would be more economical for some reason, will just pay the loan off and go elsewhere, will keep savings there to help others though.  
  • If you have savings AND a loan you are throwing your own money down the khazi!
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.7K Work, Benefits & Business
  • 603K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.