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Do I pay it Off
sweet_charriot
Posts: 48 Forumite
in Loans
I am sorry if this at times appears a little vague but I do not have all the facts.
Some months ago I needed to borrow £9000 to assist my Son. In order to do this I borrowed against 3 Endownment type savings which also offer life Insurance linked in. The interest rate on the loan was 7% APR.
One of the policies is due to mature at then end of this month and I am now in a position where i could pay the loan off the settlemt figure being just over £9000. The policy maturing is worth £6165 and if I do not pay off i am still getting £1800 of that policy.
My thoughts are I am paying £230 a month for the policies so should I consider paying of the total loan collect the full maturity on the one policy and then surrender the other two take the cash and loose outgoings of £230 a month. I do have other life cover so do not need that side.Thanks for any help.
Some months ago I needed to borrow £9000 to assist my Son. In order to do this I borrowed against 3 Endownment type savings which also offer life Insurance linked in. The interest rate on the loan was 7% APR.
One of the policies is due to mature at then end of this month and I am now in a position where i could pay the loan off the settlemt figure being just over £9000. The policy maturing is worth £6165 and if I do not pay off i am still getting £1800 of that policy.
My thoughts are I am paying £230 a month for the policies so should I consider paying of the total loan collect the full maturity on the one policy and then surrender the other two take the cash and loose outgoings of £230 a month. I do have other life cover so do not need that side.Thanks for any help.
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