Paying Back 29k loan

medrep

Hi. I have two loans with the natwest and wonder what would be the best way of reducing the overall amount I am paying back to the natwest:

283.34 per month NatWest Consolidation Loan (6.8% APR) started July 04 -84 payments in total - loan = 19000. Payable = 23800.56

149.13 per month NatWest Consolidation Loan (6.8% APR) started July 04 - 84 payments - loan = 10000. Payable = 12526.92

In total I will pay off 36327.48 (over 7k in interest). I get an annual bonus with my company which would allow me the possibility of paying off around an extra 4k per year ontop of what I am paying monthly. Should I leave the debt as it is, pay off extra chunks when spare cash is available or are there any other alternatives?

I know this might sound a daft question but if you do pay extra when money allows it does this reduce the size of the monthly payments or the length of the loan.. and what effect would it have on the interest payable?

thanks

Medrep

thanks

Rafter

The only way to reduce your payments each month is to stretch the loan out over more than the 7 years it is set up for. Do you really want to do this?

6.8% is a good rate too - you are unlikely to do much better over than length of time.

As for the effect of using your bonus for overpayment it could probably have either effect. Make sure there is no penalty for making overpayments on this type of loan though.

The only other alternative to paying less to nat west is to go on a real 'money diet' and live a spartan life for a couple of years so you can save each month and pay off most of the loan much earlier.

Is this your only debt?

Is it the monthly payment you are finding tough or just that nat west are charging you a lot of interest?

R.