Final loan payment question

$17mma

I have read on the site that if you want to pay off your loan early to incur the min amount of costs is to pay all but final payment whichwill be taken as DD when next payment is due therefore ending the arrangement early but not incurring any early settlement fees...

Here is where i am confused.........:think:

When calling loan company for final payment they give you for e.g £6879 which includes early settlement fee.

When you ask them for loan amount to date they give you £7120 (these sums are examples)

So my question is which amount do you pay before the last DD is taken
Because you are finishing early I thought it should be the first figure, but as they do not know that you are settling early will it be the second figure?

Totally confused...

$17mma

guys really need some answers on this one.. someone please help:o

roswell

You need to know what those figures are by calling them. Although im not sure what your trying to achieve, If its to pay off the loan you will need to pay the Outstanding balance + any early payment fees. (you probably signed for these in the T&C`s)

If you just pay the outstanding balance dont be surprised if they chase you for the final fees or default you if you delete the DD as they will be expecting a DD every month till the end of the loan.

jonesMUFCforever

By asking them for a setlement figure you may have alerted them to the fact that you may want to repay early and have put their early settlement costs in to act as a deterrent.
What I would have asked is what is the amount outstanding on the loan today please and if asked do not confirm that you want to clear early.