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5k loan/interest advise/early settlement

hi ppl

im about to apply for a loan of 5k but i want to pay it off in april as im due a lump sum of approx 20k.

now i know i can apply for a loan and i have a good credit rating but i want to pay as little as possible in interest im just wondering what % is paid off each month as interest and the actual loan amount.

so for example a monthly payment was 100 how much of that is interest.

i have also been looking at flexible loans but when i try and search for 1 most sites i click on just take u to the companys personal loan section and not the flexible loans part.

any advice much appreciated

Comments

  • How much interest will you be charged?
    if 10% then interest for first month will be around £41.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    to calculate the interest approximately for the first month for a 10% interest rate

    5000 x 10% /12 = £42

    the second month it will be a bit less: so if you paid 100 per month then you would then owe 5000 + 42 - 100 = 4,942
    so the interest for the second month would be
    4942 x 10% /12 = 41
    so you would now owe 4942 + 41 -100


    and so on and on
  • would it be better for me to do the 0% balance transfer credit card > egg money card > bank account then pay off the 0% cc in full in april providing i get a good credit limit. and if so has anyone actually done this recently and with which 0% cc.
  • what do you need the money for? Could you not delay it till you get your lump sum?

    If not, a 0% interest credit card will be your best bet.
  • nah need it asap unfortunately holiday to pay for
  • tealady
    tealady Posts: 3,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    Spam reported
    Find out who you are and do that on purpose (thanks to Owain Wyn Jones quoting Dolly Parton)
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