closing loan off tomorrow! urgent help needed

Doglover88

hi
im wanting to close off a personal loan with £13,338 remaining to pay and my monthly payments are £385 on 22nd of every month. If I go into a branch tomorrow (Lloyds TSB) should i pay off 12953, which will leave £385 to pay, which will automatically be debited on 22nd (2 days time) thus closing the loan off without incurring a closing fee/penalty?

many thanks in advance
glenbat

grumbler

glenbat wrote:

... thus closing the loan off without incurring a closing fee/penalty?...

This is easy to do only for flexible loans. Check your credit agreement with the object to early settlment charges.

jonesMUFCforever

If you pay this close to repayment date bank cannot cancel in time. To close now you would have to pay full amount + early repayment fee. The monthly payment which would be an overpayment and refunded in about 2 weeks time.

BooshBaby

Hi

I am in the process of paying off a GE Money Loan (must have been desperate when I took that one out!)

I was surprisingly given some really amazing advice when I rang up to get my settlement figure.

Basically my outstanding figure is £2,300 but with the redemption penalty on top it would cost me nigh on £2,900 to close the account. :mad:

I was then given the following advice:

Basically you pay half of your outstanding amount each month until you have halved your outstanding amount so many times there is a neglible penalty fee to pay.

So:-
Month One - transfer a balance from your o% credit card of £1200.00 to your loan company
Month two - transfer a balance from your other o% credit card :rolleyes: of £600.....
Month three - transfer £300.....

In the meanwhile you have been paying your monthly amount so your debt is coming down further.

Its a long winded way to do it, and of course your loan company is hanging to the last bit of interest it can wring out of you, but if you have the patience I think it is well worth the wait - and it will save me approximately £500! :j