Early Settlement

izzitme

Hello.

I have received a settlement quote for my personal loan. The figure is £4468.58 including all charges.

If I continue to pay monthly until paid off (May 2007), I will pay £ 4142.56.
Should I pay it off now or leave the money sitting in a Nationwide e-savings account?
Thanks for any help.
Mike

impy78

You get charged EXTRA? for paying off your loan early?

I got money off for doing that!

I would leave the money sitting in the account and pay it off monthly if it's cheaper to do it that way.

adrianwood

That doesn't seem to add up right, as I have recently had a settlement figure and it is cheaper to pay off now.

I would leave it as it will be cheaper!

krishna

I just logged on to ask a related question. Bought a new sofa in the january sales. They were offering 20 months interest-free credit. So thought I might as well take advantage of that. Just read through the papers on the interest free loan and one thing concerns me. It states:

"Non-Cancellable agreement - you have no right to cancel the agreement under the Consumer Credit Act 1974, the Timeshare Act 1992 or the Financial Services (Distance Marketing) Regulations 2004

"Early Settlement of this agreement - if you choose to settle this agreement early on the dates below the amount you will pay per ... £100 borrowed will be:
When a quarter of the term has elapsed £75
When half of the term has elapsed £50
When three quarters of the term has elapsed £25

"In calculating these amounts, no account has been taken of any variation which might occur under this agreement and amounts shown are accordingly only illustrative."

Size of loan £730

Now I don't NEED the loan, just thought I'd take advantage of it because it was interest-free. However, I was a bit concerned by the charges for settling early. Though I don't intend to do so, is this standard? Is there anything I need to be concerned about here? I haven't signed the forms yet, but just been told the sofa is ready, so need to do in next few days.

Loan issued by Clydesdale Financial Services.