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  • FIRST POST
    • kingandy16
    • By kingandy16 6th Sep 17, 4:07 PM
    • 3Posts
    • 0Thanks
    kingandy16
    Early settlement/Overpayment
    • #1
    • 6th Sep 17, 4:07 PM
    Early settlement/Overpayment 6th Sep 17 at 4:07 PM
    Hello,


    I have a dilemma... I have an early settlement figure of £13500 for an existing loan at 6.4% that I have.


    I have £7500 to make a lump sum payment but they will only reduce the length of the loan, not the amount that I pay a month (which is what I want to do).


    Do I...


    1. Pay off £7500 of existing loan and get a new loan at 3.5% and pay the remaining £6,000 off with that.


    2. Get a new loan of approx. 3% for the full £13500 and then make my overpayment.


    3. Pay off £7500 and get a 0% credit card of 6k and pay off that way.


    I have 4 years left of the £13500.


    Please help, thanks in advance!...Or is there a better way...


    Andrew
    Last edited by kingandy16; 06-09-2017 at 4:42 PM.
Page 1
    • Nearlyold
    • By Nearlyold 6th Sep 17, 4:34 PM
    • 937 Posts
    • 772 Thanks
    Nearlyold
    • #2
    • 6th Sep 17, 4:34 PM
    • #2
    • 6th Sep 17, 4:34 PM
    For option 2 to work you would need to ensure the lender would reduce the payment and keep the term.

    Why do you want to reduce the monthly payment rather than reduce the term which would clear the loan quicker and reduce the amount of interest paid - what is the APR on the loan you already have?
    • MallyGirl
    • By MallyGirl 6th Sep 17, 4:44 PM
    • 1,897 Posts
    • 6,339 Thanks
    MallyGirl
    • #3
    • 6th Sep 17, 4:44 PM
    • #3
    • 6th Sep 17, 4:44 PM

    3. Pay off £7500 and get a 0% credit card of 6k and pay off that way.

    Andrew
    Originally posted by kingandy16
    Make sure it is 0% on money transfers - not balance transfers - if you try this route.
    • kingandy16
    • By kingandy16 6th Sep 17, 4:46 PM
    • 3 Posts
    • 0 Thanks
    kingandy16
    • #4
    • 6th Sep 17, 4:46 PM
    • #4
    • 6th Sep 17, 4:46 PM
    Hi,


    What if I used a different lender?


    I struggle at the end of the month so save any cash, I don't mind paying it over the 4 years it is for improvements, I would then make overpayments as and when I can.


    Thanks
    • Sncjw
    • By Sncjw 6th Sep 17, 8:53 PM
    • 1,427 Posts
    • 858 Thanks
    Sncjw
    • #5
    • 6th Sep 17, 8:53 PM
    • #5
    • 6th Sep 17, 8:53 PM
    Are you garunteed to get the 3% though.
    • kingandy16
    • By kingandy16 7th Sep 17, 7:53 AM
    • 3 Posts
    • 0 Thanks
    kingandy16
    • #6
    • 7th Sep 17, 7:53 AM
    • #6
    • 7th Sep 17, 7:53 AM
    Well credit score up 983, obviously not guaranteed but surely that would help?
    • macman
    • By macman 7th Sep 17, 9:22 AM
    • 41,291 Posts
    • 16,954 Thanks
    macman
    • #7
    • 7th Sep 17, 9:22 AM
    • #7
    • 7th Sep 17, 9:22 AM
    No, because lenders don't even see it. It is meaningless. What they are interested in is your credit history.
    No free lunch, and no free laptop
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