Using Savings To Help Pay Loan Off Early?

Jaymz

Hi,

I currently have £3000 in a savings account and am wondering if I should put them towards paying off my Nationwide Loan early?

The Barclaycard will be paid off at the end of the month (no interest) and the Nationwide Credit Card is 0%APR for 9 months (The £1100 is not even on there yet as I dont even have the card yet but will be at the end of next month) so don't need to worry about that for a while.

I am currently able to overpay the Loan by about £400-500 a month at the moment but should I use my savings or some of it to help pay it off early?

Thanks

Snich

Hi,
I would say that it depends on two things: firstly the apr on your loan compared with your savings and secondly, any early repayment penalties.

How much do you get in interest on your savings? Is this more than 1% lower than the interest on your loan? If yes, I would throw about 2500 at the loan, keeping 500pounds back for emergencies. Obviously, you know your likely emergencies, so you would know if you need extra...

Good luck! Snich x

southernscouser

As Snich said, it depends on what penalties (if any) you will incur!

Best to phone them up and ask them!

James240

once i get my money back from my mum im going to throw it all at my debt perhaps leaving myself a couple of hundred pounds to allow for any emergencys

southernscouser

James240 wrote:

once i get my money back from my mum im going to throw it all at my debt perhaps leaving myself a couple of hundred pounds to allow for any emergencys

Or an Xbox 360?

Jaymz

I phoned Nationwide today and the lady was useless! I asked if I could make overpayments and she said I could send them a cheque for £100 each month. I then asked if I could make a payment of £500 and asked if there was a charge and she said 'No'.
I think it depends on who you speak to there to be honest but I am tempted to just overpay if possible and just accept the charges.
Once I have got shot of the loan the better, I took it out to buy a brand new car.

CLAPTON

try reading the T&Cs ....if they are the same as those curretnly online it would seem you can over pay