Borrowing Money

[Twinkie]

Message withdrawn

Definitely a bank loan. The interest rates are fantastic just now! They are on the increase though, as we all know from this month!

I got a 6.5k loan with full credit cover paid over 4 years. My monthly payment is £153.

Obviously the less time you take to pay it off, the less interest you will pay.

How much can you afford each month?

Look on the Halifax/Bank of Scotland website.

Message withdrawn

I'd suggest you get a loan that is over 5k as the APR usually drops then. You could probably pay a 5k loan off over 2 years for less than £300 per month!
If you have other debts why don't you consolidate them. Again, coz the interest rates are very low it's worthwhile. we did that to pay off an old loan + overdraft + credit card. The 6.5k covered that and knocked about £100 a month off our repayments.

Try Egg or Northern Rock, they both have low APRs. Can do everything over the web and they will send you forms to sign.

Have a look at www.moneysavingexpert.com/ under chat, then loans and debts, if you can't find the advice you are looking for you can just post a question, there are also other articles on best buys, etc. it's worth having a good nose around - they are just as friendly as us lot - hope this helps!

Cahoot also have a low rate loan, which you can organise and manage entirely on the internet. I took out a flexible loan with them - which means that they agree a loan limit, but it's up to you how much of the loan you actually take. You pay back the figure you choose (as long as it's over the minimum payment allowed) so you can pay back an extra lump sum if you like, when you have a little spare cash.

A couple of years ago we took a loan with egg (online bank and part of prudential). We hadn't sold our car and wanted to buy another quickly. The interest is backloaded which means that you only pay the interest on the amount outstanding so when we sold the first car we could pay a chunk off right away and not incur any further interest on that part. Customer service was excellent. As M2T says it may be worth borrowing a higher amount to reduce the apr and then pay back the surplus chunk (after a respectable amount of time, say a week!!)

cahoot has a very good flexible loan so you can pay off chunks, or the balance early. It's also one of the cheapest.