Loan Problem high rate!!

debtblue

Hello people
Here we go............... i have HSBC loan for £5050.30 with 25 months left on it. I currently pay 8.9% on it. I dont own a home so cant get a secured loan.

Now how can i reduce this rate??
Get another loan at lower rate??

or get another credit card with low interest for life, but i m not sure if I can do a loan to card balance tranfers

Please let me know what you guys think i should do.

thanks

Sup3rArsenal

Have a look on the website at which loan companies offer the best rates.

However if you do embark on a new loan then bear in mind that even if the rate is lower, you could end up paying more back in total then you already have to.

This is because when you settle the loan with HSBC you will have a couple of months interest added to the figure. You will more than likely also get an arrangement fee from the new lender and thus adding to your loan amount.

You may also take the loan out for longer than is currently left on your existing loan, as the lower payment may look more attractive. This will only add on to your total repayable.

In short you may be best stickiing with the loan agreement that you have outstanding as depending on how long you took the loan over, you may have paid back a considerable amount of interest already.

The other thing to consider is that the best unsecured rate at the moment is around 6.9%apr. Will this make a major difference to your monthly payment?