How good is a £5.500 loan with 17.8% APR payable in 2 years.

gazza975526570

kentkent wrote: »

am gonna apply for a loan, 20K 11.1% over 48mths, its that a good rate? thanks

Not really no. Guess it depends what your credit rating is like?

kentkent

gazza975526570 wrote: »

Not really no. Guess it depends what your credit rating is like?

Hi Gaz, i will apply the loan with my bank. the quote me with that interest rate.its that ok?

dannynixon

Well you can decide for yourself. At that rate, you will pay an extra £4,858 in interest in just over 4 years. Also your monthly repayments would be £517.88 over the next 4 years.

If you could get a rate for even 1% less then that, you would only pay £4, 394 interest on top and your payments would be £508.

It really depends on how much you can afford to pay per month and how much you are willing to pay in interest in the long run. I agree with Gaz about the loan not being too good but just as Gaz says, what is your credit rating like?

foreign_correspondent

it sounds pretty dreadful to me really - why do you need the loan? Is there any way you could manage without it?

dannynixon

The worrying thing from eading this forum is the number of people that want to take out loans around the 20k mark. This is a scary figure and I would not like to be the one paying it back.

Kent kent, a loan of 20k paying back £500+ for four years is something you should try to avoid if you can.

Polo10

Hi Guys, thanks for the other advice of graduate loans, I don't think that could work since you have to apply straight away after finishing school and think it works out just for Uni and not for MA's. Anyway my point is that there is another choice of getting £600 at the money shop and that would cover this month but they take interests before giving me the money so they take £90 out of the £600 and give me £510! what do you thik about it..

Polo10

Thanks Foreign Correspondent, I've survived after a month of living on beans and toasts and this friday I'm getting paid from work. The greatest thing is that I will be able to pay my bills and save some money beacuse I didn't borrowed any throughout this month. The sacrifice of living with no money for a month was really worth it. Thanks for the advice!!

foreign_correspondent wrote: »

Dont get yourself into ANY debt if you can avoid it in any way at all!! Live on beans on toast for a month rather than borrow money!