consolidate or stay as is?

Hi guys,

Need some help!
have 2 loans:
5 year - 9.1% variable tsb 19000 (inc 2000 loan protect) started in oct 05 - paying 390.88 per month
2.5 year - 7.8% variable credit union loan - 5000 started march 07 - paying 40 per week

should i continue paying each separate or consolidate with first active at 7.2% fixed or credit union at 7.8% variable?

I earn approx 460 gross per week, pay 100 rent, 60 petrol etc so money is tight!! weekly payment at the mo are approx 140.

Obviously if you can replace higher cost debt with lower cost debt it will save you money. However are you sure that you can consolidate the first loan onto the second since the first is a 5 year term versus half that on the second? Also - are there any penalties for redeeming either of the loans early in order to consolidate? Are you sure that the loan protection is worth having? Do you own a home and have a mortgage?

How (why!?) on earth did you manage to get €25K in unsecured credit on a gross income of c. €24K!

Ha ha,

I know...and to be honest I wish they hadn't given it to me in the first place! Have good loan and credit record so maybe that was it! Bought cars and unfortunately one fell apart and lost alot on it! so had no choice but to get second loan.

No..dont own home or have mortgage - no penalties on either to repay early.

Would try to apply to upgrade the CU loan to 3 year for total amount owing?!

Consolidating onto the CU rate could be beneficial in this case. Make sure that the 7.8% quoted is an APR and includes the full cost of borrowing. Do they need you to have money on deposit/in shares while borrowing from them? If so how much? Crunch the numbers and double check before making any changes.

Have you considered contacting MABS?

Did you pay the full €2,000 Payment Protection Insurance (PPI) up front as part of the loan? If you did, you will be entitled to a refund of the unused element of the PPI if you redeem the loan! You should offset this refund against your borrowing requirement from the credit union. The likely duration of your credit union should mirror the likely life of your current car - if you think you'll get four years out of it, then go for a four year loan.

Only consolidate if you are sure that you will only borrow the exact amount needed to cover your existing loans. I have seen too many people go for consolidation and then get "a little bit extra" for a holiday etc... and end up owing more than they did in the first place.

Good luck

I would cancel the loan protection.
From experience i'ts a waste of money.