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loan
hi everyone
i have a loan set at 7.9% and it finishes in feb 2023, im wondering how much i would save if i got a loan at 2.%9 which i have been offered and turned down is it worth the hassle of changing everything as its only 5%saving or should i leave it as i will only be saving pennies ?
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Comments
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You'd have saved 63% of the interest if you'd taken it and settled the other loan.
The precise sum in pounds that you'd save obviously depends on your balance.0 -
i owe around 5k having just looked at a previous letter from when i asked for a breakdown, thanks for reply
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Paying 5% less interest over the remaining 2 years will save you about £256 in total, so certainly not 'pennies'.Are you sure it's a genuine 2.9%, or just a general '2.9% representative'?No free lunch, and no free laptop
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HIwill double check thanks for the help0
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Use any loan calculator, it will show the difference.
No free lunch, and no free laptop1 -
If it really is 2.9% on the new loan and you have £5k outstanding it is worth it but bear in mind not everyone gets offered the headline rate.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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