A MONEYSAVINGEXPERT fan has saved almost lb4,000 by switching to some cheaper loan to repay her debt.
The fan, called Nicola, said she saved lb3,788 by switching – and as just one mum, she said it would be a "massive" amount for her to save.
She was featured within this week's MoneySavingExpert's weekly newsletter which outlined how others could potentially save thousands by swapping loans too.
If you'll have taken out financing, it's worth researching whether you can remove a new, cheaper loan and use it to pay off your existing one.
This is because UK low interest are low – as much as 2.8%, MoneySavingExpert said – and lenders are competing to provide customers the very best deals.
It means you can swap your loan which you may took out when rates were higher if you take out a brand new loan with lower interest repayments to pay off – which could save you money in the long-run.
First, you have to call your lender for any settlement fee – the amount of cash you need to pay to pay off your loan.
It could have an early settlement charge, that is a fee you need to pay because you're clearing your financial troubles early – this could be as much as as much as two months' price of interest repayments.
Then, you can find a new loan with a cheaper rate to repay your old loan – we've outlined the very best rates below.
To check whether you're entitled to the loan you would like, MoneySavingExpert has an eligibility calculator will see if you can apply.
If you're eligible, you should check just how much you could lay aside by switching by using its loan switching calculator.
If it can save you money on interest repayments by switching, its a good idea to make an application for the new loan.
What are the best rates going?
When The sun's rays compared rates on Uswitch for three-year loans, Cahoot and M&S Bank are providing the least expensive rate at 2.8% APR for loans worth lb7,500 and above.
Tesco Bank is offering the best rates on loans from lb5,000 to lb7,499 at 3.4%, while AA's rate for members is best for loans from lb3,000 to lb4,999 at 8.2%, otherwise it's the Mailbox at 8.3%.
For loans smaller than this, Santander, Cahoot and Tesco's rate is cheapest at 13.5% – but MoneySavingExpert said a cash transfer charge card loan will probably be cheaper.
This enables you to switch your debt to a 0% balance transfer card – which means you don't need to pay interest on the loan for a certain time period.
However, remember that top minute rates are only accessible to individuals with excellent credit scores.
If your rating isn't that great, then it's likely that you simply won't get as good a deal because this – be sure you perform the maths to see whether it's worth switching.
You may also check other comparison websites such as Money.co.uk, Comparethemarket and MoneySuperMarket to check rates too.
What are the pros and cons of switching?
While switching could be great to save money repaying your financial troubles, you should be aware from the costs of doing so.
Money.co.uk senior personal finance editor James Andrews said consolidating a current debt right into a cheaper loan could be a easy way save some money but Brits ought to be "careful the way you go about it".
He said: "You'll probably have to pay an early repayment charge.
“Make sure you take this into account when attempting to work out whether or not a brand new deal cost less.
"You'll also need to take out a brand new loan that's large enough to cover both repayment cost of the old loan and then any charges."
Moneyfacts finance expert Rachel Springall believed to check your credit report too before you apply for any new loan.
"Borrowers would be a good idea to check their credit history and make sure things are correct and if there's any discrepancies, make sure to contact the credit reference agency," she said.
StepChange's Sue Anderson warned about consolidating your debts too.
"If you have a poor credit history you're more prone to be offered loan consolidations with higher interest rates," she said.
"If this is the situation, consolidation loans might not be the best option."
Here's how one savvy saver cleared her lb32,000 debt – and it almost stopped her from purchasing a house.
Here's 20 worthwhile hacks that could cause you to hundreds of pounds richer.
It comes as one in five Brits have no idea how much debt they're in.