Loan Query.

Moneytroubles_2

A couple of days ago I rang Barclays to make a payment, usually this is £166.87 however I requested to pay £200 which I was told was fine. When I checked my internet banking they have only taken the usual £166.87, OH said this is because it is a loan agreement so I can't pay more than the amount agreed, is this correct? If so i'm worried that I won't be able to pay to my 3 loans off any faster?

Thanks X

fermi

Check the terms of your agreement.

josephine82

Definitley have a look at the paperwork. Some loans only let you pay the agreed payment and no more. Some will allow overpayments.

If you can't over pay, then save the extra in an account and let it build up, you might then be able to pay off the loan early that way?

GeorgeUK

The easiest thing to do would be to contact the bank and ask.

Some loans allow you to overpay without problem, some aedd prepayment penalties (so that if the loan finished earlier, you still make a saving, but the bank can claw back some of the interest it won't be getting), while others only allow you to make an early settlement for the outstanding amount (with an early settlement charge).

You should be able to talk through exactly what is allowed and what charges will be imposed.

If you can't make overpayments, you should try to put the extra money into a seperate high interest ssavings account and once you have enough funds available, try to make an early settlement so you are making at least some saving.

Some people with an good credit limit transfer their loans to a credit card and try to pay it off at 0% (but this can be risky as you may not get balance transafer offers after the 0% period ends)

Moneytroubles_2

Thanks for the advice, I have terrible credit so 0% credit card isn't really an option, I will give them a ring on Monday and enquire, if not I will try and save it in a seperate account.