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Saving and paying instead of overpaying on Natwest loan?
I've got a Natwest loan with around 18k outstanding. I'm paying 388 a month, and around a little under half that is interest.
I'm wanting to know if I can overpay a standard unsecured Natwest loan, and also whether it's even worth it.
The alternative is to save the money in a savings account, then pay off the loan when the savings catch up with the settlement amount.
My maths may be totally wrong, but it appears that there's no saving to me if I choose to save then pay, instead of overpaying each month.
Where am I going wrong here?
I'm wanting to know if I can overpay a standard unsecured Natwest loan, and also whether it's even worth it.
The alternative is to save the money in a savings account, then pay off the loan when the savings catch up with the settlement amount.
My maths may be totally wrong, but it appears that there's no saving to me if I choose to save then pay, instead of overpaying each month.
Where am I going wrong here?
Bank Loans: [STRIKE]£25000[/STRIKE] £0- Barclay Card 14%: [STRIKE]£2500[/STRIKE] £0- Student Loan: [STRIKE]£12,500[/STRIKE] £0
Current total [STRIKE]£40,000[/STRIKE] £0:j (100% PAID OFF)
Current total [STRIKE]£40,000[/STRIKE] £0:j (100% PAID OFF)
0
Comments
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I don't know if you are allowed to overpay.. surely you can check your T&Cs or ask them?
whether its worth it depends upon:
what is the APR of the loan?
does the loan allow overpayments?..
what do the T&Cs say about overpayments
what interest rate do you get on your savings?0
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