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Early repayment of loan
Im new to the forum so first of all..Hi everyone!
We have an outstanding balance of £21117 on a non secured personal loan that we took out 18 months ago. There are 3.5 years remaining on it. I want to pay it off in full, however when i rang TSB i would have to pay another £400 to pay it off early ( i was expecting a charge but to be honest im getting annoyed about it!!). Is it possible for me to pay the majority of the loan off and leave a little outstanding which can be collected over the term of the loan? I want to avoid the early repayment charge if at all possible.
Thanks,
We have an outstanding balance of £21117 on a non secured personal loan that we took out 18 months ago. There are 3.5 years remaining on it. I want to pay it off in full, however when i rang TSB i would have to pay another £400 to pay it off early ( i was expecting a charge but to be honest im getting annoyed about it!!). Is it possible for me to pay the majority of the loan off and leave a little outstanding which can be collected over the term of the loan? I want to avoid the early repayment charge if at all possible.
Thanks,
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Comments
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Check your origional contract. That should tell you about early repayment charges and how they work.Jan 1st 07 Car loan £4830.46@12% Personal Loan £11,517@8% variable Overdraft £1500 July 2009Halifax-£0Debt free date 14th July 2009 :j0
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The LTSB early settlement fee is 58 callendar days worth of interest, capped at £250.
Pay a lump sum overpayment, leaving roughly the amount of the last payment in place. Your last 2 direct debits will come out. One for the full amount and the other, the following month, for the remaining few pounds and pence of interest / balance. This way you will avoid the fee.Whilst my posts do not constitute financial advice, I am always, without fail, 100% right!
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