Tesco Loan v Credit Union

[mold]

Hi There,

was looking for some advice, I currently pay 520 monthly to the credit union for a loan, and i was looking at the tesco website and the same loan (over longer period) would reduce my payments by nearly 250 a month, So i had an idea, of applying for loan with tesco, clearing the credit union loan, and the extra money each month putting in either the pension or back into credit union saving, Is this a good idea or am i just making things worse for myself in the long run,
Some advice would be greatly appreciated,

 

[CCOVICH]

The only way this makes sense is if you are confident that your investment in share, pension etc. will generate a return higher than the interest you repay on the loan.

If you can afford €520 per month (i.e. it is not eating into your ability to pay mortgage, rent, groceries etc) then stick with that. Once you have paid off the loan you can start to think about investment.

If you can refinance over the same period of time for lower payments by switching to another lender than the CU then you should certainly consider doing that.

I don't really think your idea makes sound financial sense.