Finance

If Choose to Top Up amount $4,000:

If you top up loan $4,000 in existing loan @28% for five years than your weekly repayment $ 33 will be increased till five years.  In this case you have to bear the extra loan cost $3,380 against $ 4,000, total repayment will be $7,380 in five years.  Always remember in personal loan, banks recover the 80% interest and 20% principal in initial installments and with the time being ratio is converting with more principal and less mark up.

If you borrowed the top up than you will pay the outstanding balancing of both credit cards one is $860($140 already topped in this week) and other is $2500($500 already topped in this week).

By adjusting the both credit cards you will save the 3% on outstanding balance which will be $ 101$ monthly and weekly will be 25$.  If outstanding balance continue than annual rate will be 3%x12=36%, which is very high to pay only interest without merger of principal.

In this case you will got the personal loan at 28% and adjust the 36% cost bearing credit card along other expenses like dental to be managed.  Through this loan your cash flow will be not disturbed as sudden payment of credit card outstanding principal balance.

Through this your weekly surplus will be decrease in short run but will be increased after 5 years.

Low Rate Master Card with $4,000 Credit Limit

In this scenario, if you used the card than you have to pay 5% monthly on outstanding balance which is only fee and total of 60% annually.  Further along monthly fee you will bear the 13.5% annually which will be total 13.5% + 60%=73.5%.

It is very high cost loan; in this case you will save if you topped the card total amount within six month or year.  If you want to run for more time like 3 to 5 years than this loan is not manageable.  In this you are cleared if you forgot to deposit minimum amount than more surcharge or fee will be have to pay.  Further card schedule of charges will be changed semiannually and you are bound to follow it.