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Refinancing loan advice?
Hey everyone,
I'm looking for some general advice on possibly refinancing a loan.
So I currently have 2 loans. One is 230 pounds a month, this is paid off in 25 months, just over 5k total
One is 330 a month which still has about 5 years left to run - just over 16000 total
A recent change of job and having to wait 7 weeks until pay day has stretched finances. Usually I am on top of them, have never missed any payments etc (I won't miss these one's either, but about half of my wage will go to paying off my current over draft due to the time between pay days).
I've done a bit of research and I can borrow more on my 5k loan, this can pay off my current 16k loan, as well as a few others things, all in all I would be about 150 pound a month better off, but this would mean having to start a fresh loan over 84 months.
Is this worth doing? Or is it worth plodding on until the smaller loan is paid off in just over 2 years?
Thanks guys, appreciate it.
I'm looking for some general advice on possibly refinancing a loan.
So I currently have 2 loans. One is 230 pounds a month, this is paid off in 25 months, just over 5k total
One is 330 a month which still has about 5 years left to run - just over 16000 total
A recent change of job and having to wait 7 weeks until pay day has stretched finances. Usually I am on top of them, have never missed any payments etc (I won't miss these one's either, but about half of my wage will go to paying off my current over draft due to the time between pay days).
I've done a bit of research and I can borrow more on my 5k loan, this can pay off my current 16k loan, as well as a few others things, all in all I would be about 150 pound a month better off, but this would mean having to start a fresh loan over 84 months.
Is this worth doing? Or is it worth plodding on until the smaller loan is paid off in just over 2 years?
Thanks guys, appreciate it.
0
Comments
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Is there any chance you would get a 0% money transfer credit card? Not to clear the loans, but to bridge you until your new monthly wage catches up. It seems a shame to increase your loan, in another 7 years you won't even remember what it was for and will probably have paid loads more in interest than if you pay it off sooner. You don't mention the interest rates, do you know them? That would be the most helpful for people able to offer advice.Debt Free: 01/01/20201
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Its never good to advise borrowing more money to pay your current debts, even if, on paper, you may be better off, 84 months is a v e r y l o n g time, and a lot can happen in between.
Just as a salutary warning, lots of ex bankrupts and insolvents consolidated their debts, many on more than one occasion, it can be a slippery slope once you start sliding.
Don`t think it can`t happen to me, it can happen to anyone, please think very carefully before committing yourself.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter2
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