Loan advice please

Cariad_3

I wish to borrow £7,000 but I have an existing loan of £4,000 and I want to know if there is a way of almagamating both these figures without greatly increasing my outgoing payments.

I thought maybe I could borrow on my mortgage but reading info on this site it doesn't seem a good idea.

Another thought was borrowing on the 0% credit cards and then changing them every few months but thinking about it my outgoings would be higher than they are now. My credit rating is good, I just need advice on which way to turn and with which company.

Any advice greatly appreciated.

Rafter

Cariad,

There are only two ways to keep the same payment or borrow more. 1) Reschedule the loan over a longer period or 2) find a loan with a much lower interest rate.

Whether it is worth repaying your existing loan depends on how long you have had it for, what the interest rate is and what the early repayment penalty is.

Here are some options for you:

1) Apply for an MBNA credit card (MBNA, Virgin, Abbey or Alliance & Leicester). They are historically quite generous with credit limits etc and have the advantage that the minimum payment (DURING THE 0% OFFER PERIOD) is only £5. The problem is that after this period you will need to transfer the balance somewhere else and you will probably be charged a 2% or £50 fee for doing so.

2) Come back with details of your current loan: time to run, settlement value (call them to find out), whether or not you have payment protection, what the interest rate is, how much you are paying each month, and if your credit rating is good see whether someone can recommend a better loan.

Another useful piece of information is what you need the money for. If it is simply to pay off credit card debt for holidays, clothes etc, I would not recommend taking out long term debt for this, but a bit of 'money dieting' to free up cash and get yourself debt free. However, if it is for a car or home improvement, then maybe rescheduling your debt over a longer period might be more sensible.


Good luck.

R.