Abbey - Paying off Loan early?

KipKip_2

hello
just wondered if anyone else has had experience in paying off a loan early at a full and final settlement figure, but has not ever defaulted on payments or the debt has not been sold on to an agent?

I've got a loan with abbey with about £8k left, I have never (to my knowledge) missed a payment, I pay only £179 a month.

I'm going to college next September so want to save up enough money to pay this loan off early in one lump sum (i cannot make additional payments on this loan). I dont think it's realistic to say that i will save up £8k in 11 months, will probably have about £6k.

Do you think they would accept a full and final settlement offer even though i have never defaulted and it's never been sold on? all the F&F stories i have heard have been with defaulted loans/credit cards.

I will no way be able to get £8k so thought once i have the £6k saved up I could perhaps deliberatly default on the loan, cancel direct debit etc, so it gets sold on to debt agency and THEN offer the F&F at the £6k???

any ideas/solutions?? :-) thanks for reading!!!!!!!!

KipKip

Happytogetdebtfree

erm id advise against that because you may default and they may not take a full and final settlement figure of 6k and i dont think its that easy as you default and then you get a settlement after all debt collection agencys add tax on and so fourth so why not just carry on with paying it and keep the savings to help with college funds so that you dont add to your debt, hth x

KipKip_2

Becuase I really want to go to college (& then uni) without any debts whatsoever...

I have a budget for when I am in college with income from part time job and wont have enough to cover the loan repayments.... if i cant pay it off ill be paying this loan off till 2014! really dont want to do it...

im hoping i can get a second job so i can save up the extra £2k but im just considering my options at the mo.

thanks for the info though. I wasnt sure how F&F works!

JimmyTheWig

Save up the £6k. Put it in an account and then use that account to pay your loan repayments throughout your course.
Is it a 3 year course? If so, it will actually last about 2 years and 9 months (i.e. start in September, finish in June). That's 33 months.
33 monthly repayments would be 33 x £179 = £5907. Pretty much spot on what you will have saved up.
So fair enough you won't be debt free when you start the course (but then, having taken out a loan with such a long repayment period that was never likely!) but the repayments won't eat into your college money.

KipKip_2

Jimmythewig

its a 1 year college then 3 year uni course.... i'd be okay paying the loan through college when i can earn some money thru part time job, but then after i'v used up the £6k saved ill still have to find £2k!

i think i better start looking for a 2nd job to save up the additional £2k!!

thanks for the advise anyway!!!!

that loan was the biggest mistake of my life!!!!!!!!! taking it out over so many years!!!!

Happytogetdebtfree

relax you seem to be panicking do what jim suggested use the cash saved to pay for the loan and whilse you are at uni you will figure something out, what are you going to do at uni, i mean you have at least a year to think about the loan so use the 6k to meet the payments and while thats been used to pay the minimum you have that spare time to accumulate another years worth of payments which is 2148 so in the 1 year at college where cash wont be an issue save what you can to cover the payments when cash might be an issue.... or request cash for birthdays and xmas now and put it aside ... hth

JimmyTheWig

Alternatively, what did you buy with the loan? Is it something you can sell to help settle the balance?

Happytogetdebtfree

yes good idea jim, good luck with this x

KipKip_2

hmmm what did i buy with the loan? erm paid off two credit cards, bought a car (that i dont have anymore) and spent the rest on crap! i am the typical girl who went mad with a credit card and loan!!

silly me, picking up the pieces now.

studying midwifery at uni, so cant get a part time job while there :-(

I've just realised though, between now and next August after my monthly repayments the loan will roughly be about £6,700 anyway so i think i was panicking happytogetdebtfree!

thanks for your advicy guys, i think im just worried that im not going to be able to pay it all off im time..

Happytogetdebtfree

i trained in adult nursing i am sure you get a standard monthly payment from nhs that we dont pay back a bursary is the coorect word i did nhsp bank shiftson weeknds, just relax your doing well x