Advice please on loan debt...

CJ2512

Hi Everyone,

I am in need of some advice on how to reduce our existing debt which consists of: -

Barclays Loan - 12.475%
Balance = £9733.68
Re paid by September 2011 @ £218.97 per month

CBS Loan - 5.7% fixed 'till Dec '09
Balance = £18,150.56
Paying £107.26 per month - term 30 years!!! This was taked out with our mortgage product which we took out in March 2007.

The problem is that i am a full time student with no income, my fiance works full time and is self - employed so there is no guarantee on what he earns a week (as an average we base it on £500.00 per week). I receive a bursary of £250.00 per month. We are also getting married in August so money is going towards that.

What i am looking to do is to see if there is a better way of reducing our loan by may be switching to a cheaper lender? Then after the wedding, concentrate on saving money to pay of the debts?

Please can someone advise on what is best for us to do in our situation?

Thank you very much

immoral_angeluk

bumpety bump

tyllwyd

Well, the first thing to do is to ring up and get a settlement figure for what it would cost to pay them off today. Then work out how many months of payments you have got left to make to check how much you will pay in total if you let them run their course.

My guess is that the 30 year one in particular will be a nightmare, because in this first year you will have paid mainly interest, and with any set up costs and early redemption penalties, you might even find that it would cost you more to settle it now. But it can't hurt to ask the question so you know where you stand.