Advice needed consolidate or continue

Hello folks looking for advice basically i was put on a trust deed
A few years back .got myself sorted but heres where i meed help currently i have a loan and my mortgage my settlement figure is
loan 9271.00 i pay 227.64 a month still got 41 mths to go
Mort 3963.00 i pay 300.00 a minth still got 14 mths to go
Total for month is 527 a month
Now if i pay off both with new loan of 15001 over 5 yrs
Loan 15001 id pay 269 a month for 60 mths
Saving me 258 pounds a month is this my best option
as i can afford it now i have a good job and security im jist trying
To pay off my debt quick and save me mo thly outgoings
Any help appreciated thank you in advance

Comments

  • Hi,

    I believe that consolidating will mean you pay more in total interest. Have you considered getting a promotional 0% APR Money Transfer card to reduce the total amount paid in interest?
    https://www.moneysavingexpert.com/credit-cards/money-transfers/
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  • Ive never heard of that .im basically wanting to pay off my mortgage and a loan save some moneyba mth to help pay off my new roof if you can understand me
  • How much is the new roof? Are you sure your balances on the loan are correct? The interest rate looks very low.
  • No I would not advise that. If your mortgage is to be repaid in 14 months that is only a year away then you can overpay the loan. Consolidating and extending the term to 60 months will mean a higher interest rate and a longer term so much more expensive. Increase the term on your mortgage if you are struggling as that looks like a low interest rate. What are you paying on both debts in terms of interest rates?

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    Link to soa: https://www.lemonfool.co.uk/financecalculators/soa.php

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  • Can you afford the £527 a month? If you can keep going with it, then you can start to overpay the loan.
    It might be worthwhile posting a soa so people can offer more help
  • Hiya

    As said above and to help us get a better idea of where your money is going and for us to suggest savings etc you may want to fill in a statement of affairs http://www.stoozing.com/calculator/soa.php - format for MSE!

    Also you may want to join the MSE Credit Club which you can put your details into to see if you could get a 0% balance transfer. If will only do soft searches so they won't leave a mark on your credit report. https://www.moneysavingexpert.com/creditclub/

    I'd stick to where you are now as imagine being debt free in 14 months. You could tell use that £300 to snowball that as an overpayment for your loan. Are you on the SVR for your mortgage?
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • macman
    macman Posts: 52,992
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    Look at the total cost of the loan, not the monthly payment. Consolidation means you extend the loan term and pay more in total.
    No free lunch, and no free laptop ;)
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