advice about overpayment on loan`

fairmorn308

evening.

I have 2 loans with welcome finance. and am wanting them paid off at quickly as possible. there nearest office is 30 miles away and i know they said i can make payments at there office but for a small payment its not worth travelling through.

I am wanting to know if there is a payment book i can get so i can pop into the bank and make payments so i still have a record of it all as i dont trust welcome finance at all. Also when i have some free cash means i can pop into bank etc and make a payment.

also for example i have a loan with £1900 left approx and with 20 payments left. the amount above is the amount with the interest on etc. If i was to make extra payments how would i work out how much interest am saving and what the new balance will be?

30dirtybirds

Hi,

If welcome finance are like most lenders they let you pay back the amount quicker by making these kind of payments but the payments have no effect on the interest to be paid.

so if you borrowed £1000, and the interest to be paid back was £250, no matter how many payments you make you'll still have to pay £1,250.

The only time this is different is on a final settlement payment. in which case you can save some money.

the best idea is probably to stuff your money in a high interest internet account (that way you don't even have to leave the house) and when you have enough to clear the loan take it out and go and make a final payment.

Of course welcome finance might have a different policy but reading some reviews of them I doubt it.