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paying off loan

romeodines Posts: 1 Newbie

11 September 2008 at 5:54PM in Loans

Hi everyone

I am new to the forum and was hoping for some advice on paying off my 11000 loan with the hbos. When I rang up they gave me a settlement figure of 9500 or thereabouts. Also said I could make overpayment without penalty but that I would be better saving up and paying off the amount in full. However they also said if I made substantial overpayments this would decrease the amount of interest charged. She did not seem keen on me doing this however stating that if I did that they would rather negotiate me a new loan??????????? I am a bit confused as to the best plan of action to take. I know I would be best trying to save the full amount and pay it off but know I would be tempted to spend it on other things in the meantime!!!!! Any advice would be greatly appreciated. I pay £158 monthly at 7.9 apr and am due to finnish in 2014

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