So my partner and I stay in a flat. We both have almost £3000 debt. In which case£2000 must pay asap. I have £1000 credit card payments. We are thinking to take £6000 loan from a bank for 4 years with 18% interest. Which goes monthly £167. So we are thinking to take this loan. And pay £500 monthly, £250 each rather than £167. So we can now pay off our all debt and save those £3000 extras. Incase we are in need of urgent money. As we are on skilled worker visa, and we gonna need ateast £8000 for visa renewal. So we need to save money. We calculated everything and minus all the expenses from our salaries, we can save £300-£400 each.
I have to make decision in next day or two. Please please help me out.
Thank you in advance. Hope you have a great day ahead.
A very good financial advice can take my stress away
byu/EmeryCwonders inpersonalfinance
Posted by EmeryCwonders
2 Comments
18% interest is an emergency. Taking an 18% loan is a horrible idea unless you already have debt at 30%+
The way to pay debt is to cut expenses, increase income, and pay more to the debt each month. Not to take more debt. You can’t save anything until your high rate debt is gone. The last thing you should do is sign for 4 more years of high-rate debt.
Try posting in r/UKPersonalFinance. This sub tends to be primarily US based and they might have better answers over there.