Paying off Barclayloan Early

slig

Hi,

I have a Barclayloan linked to my bank account, currently at around £2000. I would like to pay this off early, either in one go, or by overpaying (can't afford to pay off the whole thing yet). Anyone know if this is possible and how I do it? I will go in and ask my bank, but I'd prefer to know the answer in advance so I don't get tricked into anything!

I found an old thread here, but I'm not sure if any of this information still applies http://forums.moneysavingexpert.com/showthread.html?t=254330.

Thanks .

Rafter

All depends on how long you have had it and the terms and conditions - there might be a penalty for paying early. Best thing is to ask Barclays to be honest. Particularly if there is any benefit to overpaying or whether you are better off saving to repay the whole balance.

R.

naijapower

Hopefully you will get some good response here. There is a Barclays Mgr on board.

cjcart

Hi,

I have the same problem as 'Slig'. My baclayloan outstanding balance of £12,000 and I have £4,000 in savings I used to have £9,000 but I keep dipping into it or leading people money!!

I went to barclays and asked if I could pay the £9,000 off at the time a balance of £14,000. Their answer was that I could but the term would still be 6 years and the APR with go up from 16.9% to 25%.

I have read the link that 'Slig' posted and was wondering if anyone knows what 'crawley_girl' did, if this can still be done, I am getting really desperate as I know I will just keep wasting my money and still be stuck with a big loan.

If anyone knows can you let me know asap, I would be very very grateful

Thanks

Extant

For the above link - no, you cannot do that anymore. You used to be able to do it with old style Barclayloans, which were all on 20- sort codes. They were, effectively, current accounts that the Bank just forced overdrawn - that's how the loan used to be created.

However, since the Consumer Credit Act 2006 came in to force, all Barclays loans are now on a 23- sort code under a separate system. Although you can theoretically over-pay on these accounts now, it won't make any difference - your loan agreement is for X amount per month for Y years. We'll continue to ask for that amount, and there's no provision in your loan agreement for an overpayment.

If you want to do anything, your two options are 1) repay the loan in full and end the agreement; 2) take out a new loan for a lower amount using existing funds to cover part re-payment.

slig

Thank you, that's helpful. For my smaller amount it seems the easiest option is saving up and paying it off in full.

I guess for cjcart's larger amount the second option might be worth considering: eg getting another loan for £8000, and using the new loan and savings to pay off the first loan in full. Cjcart could also then select a shorter repayment term.

Thanks again.

cjcart

Thanks, BarclaysBankManager.

I have decided to try harder at saving, I have £6040 in savings now and my outstanding balance is about £11300. So I am feeling much more positive in clearing it now.

I have done alot of overtime in work recently so August pay day another £1300 going in the pot!! - and I am trying to reign in money owed to me, fingers crossed!!