Avi

I'm not really a finance buff, so i'll ask the SNet experts.

A friend has a loan with A&L for £10000 at 13.1% fixed over 48 months. Looking at the statements last night, the interest was all applied at the start. So the initial loan was for £12300 (ish). I think they are paying around £260 a month and they are now half way through (24 months) with over 6k left to pay

I suspect that now their credit is a bit better they may be able to take out a lower interest loan, and pay the remaining off. Will the settlement figure be less than the outstanding balance, as the interest has to be recalculated ?

Any Advice greatly appreciated as allways.

Avi

dunx

iTrader: (3)

Depends on the small print, and I doubt whether many banks are doing decent rates ATM.
I'm with L.TSB and they are pathetic, 13.9% vs 5.9% at a dealer.... madness.

dunx

orbix

If you can get the credit limit you want then credit cards are a better option.

EddScott

Cards IF they are disciplined enough not to use them. Two 0% 3K limit cards that allow cash transfers (MBNA do)

Cash transfer two lots of 6K, pay off loan, pay cards ASAP.

They should get a slightly better deal now but not much. Rates are rubbish ATM.