Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • nzxt
    • By nzxt 20th Mar 17, 11:14 PM
    • 12Posts
    • 4Thanks
    nzxt
    Settlement figure
    • #1
    • 20th Mar 17, 11:14 PM
    Settlement figure 20th Mar 17 at 11:14 PM
    Hi, I took a loan out for £4946.40 @ 4.1% interest / 7.9% APR over 48 months. tTe current outstanding balance is £2050.54. What is the calculation to figure out the interest savings if a final settlement was asked for?
Page 1
    • Nebulous2
    • By Nebulous2 21st Mar 17, 12:08 AM
    • 1,563 Posts
    • 950 Thanks
    Nebulous2
    • #2
    • 21st Mar 17, 12:08 AM
    • #2
    • 21st Mar 17, 12:08 AM
    Multiply the monthly payment by the number of payments left. Then deduct the settlement figure. Whatever is left is the saving.

    Settlement figures vary. Lenders are allowed to charge a settlement fee of two months interest but some of them don't. Your terms and conditions will tell you if yours does.
    • C.M.
    • By C.M. 21st Mar 17, 7:49 AM
    • 49 Posts
    • 98 Thanks
    C.M.
    • #3
    • 21st Mar 17, 7:49 AM
    • #3
    • 21st Mar 17, 7:49 AM
    From my experience with tesco they do charge interest for repaying early. However, if you were to make a larger over payment (and ask for it to reduce the term of the loan) and then wait a few days for it to appear on your account, then the additional interest will only be charged on the remaining amount - saving you a bit extra again
    • Money Rollercoaster
    • By Money Rollercoaster 21st Mar 17, 10:22 AM
    • 246 Posts
    • 598 Thanks
    Money Rollercoaster
    • #4
    • 21st Mar 17, 10:22 AM
    • #4
    • 21st Mar 17, 10:22 AM
    It's easier just to ring Tesco for the settlement figure ...


    A couple of things to note:


    1. they'll likely charge you 58 days interest as part of your settlement
    2. the settlement figures can be a bit odd, because they might not include your most recent payment (due to the time they allocate for clearing)
    Living Life @ 174 BPM >> CC Balance (0%) -£3,565.99 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£19,803.74 - Target DFD Nov 2020
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,419Posts Today

7,917Users online

Martin's Twitter