##~loan Repayment~##

CLAPTON

if the APR for the overdraft is less than 16.9% then that sounds fine... presumably you are not currently using the OD?
and make sure you reducing the balance on the OD each month and don't allow it to grow

Debt_Free_Dreamer

Your mthly payments are £75 x 60 months = £4,500 over the term of the loan

You have paid 3 years and 7 months (43 x £75 = £1,425)

Remaining term if you continued with loan - 2 years 5 months (29 x £75 = £2,175)

So with your settlement figure, you could save £2,175 - £1,285 = £890) by settling earlier, but you need to get the money from somewhere else.

If you are able to get a 0% card with a balance transfer to bank account option like and MBNA at 4% SBT. It would cost you around £50 to shift the debt via your bank account. So the MBNA card option could potentially save you around £840.

But....

You would need to repay within 15 months when the 0% would end.

If you add the 2 figures together (settlement + cost of SBT £50 = approx £1,335)

I make it that you would need to repay about £89 to clear the debt before the 0% runs out. Or, if you want to be really clever, you pay the minimum and put the rest into a savings account till the 0% is about to run out. This will help make the cost of borrowing even lower.

If you choose to go into your overdraft, you need to consider how many days during the month would this actually happen. Would you ever go into credit? Or would you be in a permenant overdraft status (as this is not good)

I'd say go for it. I never have standard loans these days, everything goes via 0% cards. Much cheaper if you can clear the debt in a short period of time.

BadgerFace_2

Hi,

2 things-

-Firstly, Debt Free Dreamer, your maths is way out there! You have based figures on 6 yrs of payments (72 months)

-Secondly, OP, you seem to be implying that you should be paying less for this loan now. I think you need to carefully consider that yes, you COULD pay less, but that will invariably mean you pay interest for longer and therefore probably MORE over the term.

If you moved to your HSBC overdraft (if it is say 15.9%, though my guess is it's 19.9% like mine) and paid a lower amount each month, you would have the debt for longer and thus be incurring interest for longer...This would cost a lot more.

amersall

hi , do you know this thread is 2008?

BadgerFace_2

LOL, hope he's paid his loan off!