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Pay off loan with another loan?

JTT_2
JTT_2 Posts: 27 Forumite
I have a Loan from Sainsbury's that I used to buy my car. I would like to know if there is a way to pay some or most of the loan, by getting another loan with cheaper interest.

Any help/advice would be appreciated. I've just joined and am spellbound that there is a sight out there, which is willing to help for FREE no strings.
Knowledge is power :wave:

Comments

  • zcaprd7
    zcaprd7 Posts: 1,079 Forumite
    Ring them up and ask - I imagine there will be penalties to consider before switching...
  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    According to the website, there is currently a 2month interest penalty for repaying your loan early.

    The conditions may have been different when you took out your loan though so you need to check the details.

    Alternatively give them a call and ask for a 'settlement' balance.

    You can then work out the payments left to go versus taking out a new loan or even using a zero % credit card to fund some of it.

    Hope that helps. Get back to us if you need help with the calculation. (need loan amount, number of payments made, interest rate, length of loan, penalty charges and then can advise how much you could save with a better value loan or alternatives.

    R.
    Smile :), it makes people wonder what you have been up to.
  • JTT_2
    JTT_2 Posts: 27 Forumite
    I'll get back to you when I have the details. Thanks
    Knowledge is power :wave:
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