hello experts,

i have been offered a loan of 25000 on 13.9% by my bank hsbc. i want to use it for paying off my debts and getting some financial discipline back to my life. would you please let me know that:

is this a good deal, i want to pay back in 18 months

should i be borrowing more so that i can pay the debt of and use the rest for paying deposit for another mortgage, is this realistic

any help would be very welcome.

thanx ali

Hi Ali,

Though 13.9% isn't the most competitive rate for this amount of finance, if it clears your unsecured debts, it might be worth taking on. But be clear about how you are going to use this money before you take the loan out - allocate each part to paying something off, otherwise it will just become an additional sum of money that you've got to find each month.

In the current financial turmoil that we now find ourselves, it would be better advised to clear everything you owe, repay the loan at an affordable rate, and save any surplus cash until the housing market levels out. There are some pretty good savings rates out there which you could utilise.

Rob

thanx very much rob, i have taken it out and cleared all the debts already

regards

ali