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Paying off extra each month on loan?
Hi,
We have a loan with NR, taken out 5 years ago with 2 years left to run and an interest rate of 5.7%.
We are currently paying £162 a month and there is a balance of £4066 on the account, the original loan was for £8500.
We are thinking of paying an extra £50 per month which I think means the loan could be paid off around 6 months earlier.
Does anyone know how much interest we could save by doing this?
Thanks;)
We have a loan with NR, taken out 5 years ago with 2 years left to run and an interest rate of 5.7%.
We are currently paying £162 a month and there is a balance of £4066 on the account, the original loan was for £8500.
We are thinking of paying an extra £50 per month which I think means the loan could be paid off around 6 months earlier.
Does anyone know how much interest we could save by doing this?
Thanks;)
0
Comments
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First check if NR will allow you to do this and if so how to make the additional payments.
Make sure also that you do not have any other debt that you are paying more than 5.7% on.
As an approximation I would expect you to save 25% of the interest on that loan if you stick to your plan.0
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