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Credit union loans

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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: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 23 September 2020 at 12:34PM
    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!
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