Consolidating Personal Loans?

[dilbert27]

Hi,

have 2 personal loans with AIB:

1. €4380 - monthly repayment €105 - 4yrs 2 months left
2. €17500 - montly repayment €403 - 4yrs 10 months left

Total montly repayments at present are €508

From their website if I had a loan of €21880 for 5 years the monthly repayments would be €463 a difference of €45 a month or €540 a year.

Do you think they would let me consolidate these 2 personal loans?

 

[callybags]

Hi Dilbert

On the face of it you would be saving €844 overall by consolidating the two loans and paying it off over 5 years. (Present repayments totalling €28,624 against new total of €27,780.) However, this is assuming the existing loans are on a fixed interest rate.

If so, there would more than likely be a fee to pay off the loans early, which is effectively what you would be doing by consolidating.

You would also need to check if the new loan rate if fixed for the 5 year term.

 

[dilbert27]

Thanks Callybags. I'll set up a meeting with my bank manager and see how it goes.