Loan to pay a loan advice..

okgo

Hi guys,

Right I am not asking for anything to taxing here, but being a bit new to the big wide world ect

I hope some of you will be able to make this process simple.

Currently I have a loan with natwest, and it stands at the moment at £8800 left to pay.Stupidly I took out the insurance aswell.

The figure is about £160 a month for another 54 months left to pay.

Now they have given me an early settlement Of £6000 ish which would save me some cash. I think from memory.

Now I have looked on the paper it says its at 16% apr..

Would I be better off getting another loan from somewhere else with a lower rate to pay the settlement?

What way would you do it?

As it needs to be sorted, but I dont readily have that amount of cash to loose in one lump, and if I dont have the settlement fee in whole then its a waste of time apparently..

Any help/advice would be great.

mrgiii

I'm no expert, but until your existing loan is paid off, won't it still be showing on your credit record and therefore may put other lenders off giving you the money.....

If you haven't got many other lines of credit and your on a decent income then other lenders may be willing to lend you the money.

okgo

I am on a decent enough income, but I dont own any other credit cards or anything like that?

Any more light to shed on this?

jonesMUFCforever

Have you asked Natwest if they can reschedule the loan at a lower rate?

okgo

No I havent.

What would this entail?

UK007BullDog

Ask your branch or go to other banks as well, be sure not to get credit checked though. Or look for 0% balance transfer cards. check out stoozing.

jonesMUFCforever

okgo wrote: »

No I havent.

What would this entail?

Go into a branch and ask if they would reschedule the loan - see what interest rate they would offer before making any lasting decision to proceed.