# Short Term Debt



## fiachra (28 Jun 2011)

Hi There, I have a 5 year term loan with AIB , it matures in oct 2012, there is €6443 due on it as at 01/06/2011, I also have an overdraft of €5302 which i need to repay. Should I add this to the loan and repay the entire amount over 36 months They have quoted repayments of €388 per month to do this ? Thanks for your help.


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## steph1 (30 Jun 2011)

jzr123 said:


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???


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## bullworth (30 Jun 2011)

steph1 said:


> ???



It's a spammer or spambot !

He/she will get banned and the messages removed soon enough.


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## horusd (30 Jun 2011)

Whilst paying down debts might be the right thing for you, and you want to consolidate these into a single payment, the interest rate will be a critical factor. Is it better or at least the same than you are currently paying? 
There  will also be a saving from repaying overdraft, and you should factor this into your thinking.

However you might also want to retain some element of an overdraft, as it might be useful if not abused.


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## Macstuff (1 Jul 2011)

I too am in a similiar postion ie have a loan with BOI that finishes in 2012 and an overdraft that is always at or near it's limit. I know how I ended up here and have drastically changed my spending habits since. 

I talked to BOI about converting the OD into a loan, but decided not the proceed as the rate they were offering on the new loan was MUCH greater than the OD rate I currently have. 
The rate for the personal loan would have been 13.5% and the OD is "only" 10.4%. 

I am now paying off the OD month by month and hope to have it cleared within 12 months. 

As the previous poster says find out:
a) the rate for your new loan
b) the rate on your current OD
c) the rate on your current loan. 

Make your decision on what how to proceed based on what rates are best. 

Best of luck


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