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Loan repayments?

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  • 18-01-2013 1:06pm
    #1
    Wexy86
    Registered Users Posts: 438 ✭✭


    Hi (not sure if this is the right forum)

    I currently have 2 loans. One at a student rate and another personal loan, the value of the personal loan its about 4 times my student loan.

    I'm now in a position to increase my payments monthly by about €200/€250.

    Which is better to do, pay the personal loan or try clear the smaller student loan and when this is clear to just pay towards the personal loan only? The interest rate on my student account is half the personal loan rate. Hope this is enough info.

    Thanks folks.


Comments

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    #2
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    Simple: put your effort into paying down the loan with the higher interest rate.


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    #3
    Wexy86
    Registered Users Posts: 438 ✭✭Wexy86


    Thanks for the quick reply. Credit rating wise done it make a difference if you have one or 2 loans? Assuming all payments are up to date and in order. Apologies for my lack of knowledge.


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    #4
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    In general, you will not have a problem with your credit rating if you have more than one loan so long as you are servicing all of them properly.

    No need to apologise for your lack of knowledge: you are dealing with it. Apologise if you came back here in six months' time with the same questions!


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Agree also, pay one with the highest interest first, irregardless of balance outstanding on them.


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