Consolidation of loans, Best deal UB fixed rate?

J

johnny

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hi all, i have a couple of outstanding loans that im thinking of consolidating, i dont have a mortgage currently..my boi loans costs €249pm apr 8.4%..my cu loan costs €300pm apr 9.5%..i have €3000 tied up in shares in the cu, overall i have approx €18,000 to repay..ub are apparently offering afixed rate loan at 5.8% providing you switch your account to them ( there a fee of €9 pm for this, but i was told you get €150 for joining ...on €18000, the repayments come to €354pm ..less than iam paying now...Or is it that transparent????...i have €15000 lying idle in my current account, i dont really need it currently, even though i like the security of having it around if i ever need it for "emergencys"..However would it be more financially prudent to clear off some of my debts with it????...Any advice greatly appreciated!!
 
The best move would be to pay off €15000 of the debt with the money in your current account.

Any other decision will cost you more money.
 
HotdogsFolks said:
The best move would be to pay off €15000 of the debt with the money in your current account.

Any other decision will cost you more money.
Click to expand...

This is really good advice. By NOT using the €15000 to pay off most of the €18,000 it is costing you money in interest.......and even if you want to security of having a bit of money put aside, why not hold onto €5k & put €10k into paying off your debts. It does not make sense to have all this money doing nothing.....and if you're saving for a house or something, having debts will impact on the amount you can borrow and you'll probably be advised to pay off the debts first.
 
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