How come I can't increase my monthly payments!?

the_little_one

I've had been paying off a personal loan for 6 years (only 2 yrs to go) at a reasonably low payment each month.
At the time I got the loan it was all I could muster but now I'm better off I'd like to pay it off sooner so requested to increase my monthly repayments online (it's an Egg Loan if that is of any help) firstly I received a message saying yes this is fine no problem. Then a few mins later I received another email saying it was declined.

I've never missed a payment, it's always been on time and I have a good rating - any clues why they are saying no and is it worth phoning them do you think to ask if I can increase it?

Honestly you try to pay off your loans and become more moey savvy and the bloomin banks won't let you!

Many Thanks In Advance

LeeSouthEast

Loan interest is usually calculated ahead of time (front loading), so over-payments throw that out of whack. The likelihood is your only alternative is to keep paying the payments, and save up for a 'lump sum early settlement', which is what I'm doing with my Barclayloan.

CLAPTON

some loans do allow overpayments and some don't.. you need to check the T&Cs
I must say I thought Egg were one of the good guys but there you go

loopy.magic

This is probably more to do with their internal processes and systems being unable to handle your request (i.e. computer says no).

Firstly you'll have to check the terms and conditions of your loan agreement, see if it allows for extra ad-hoc payments. If it does then you maybe better off paying your loan in 2 parts. The 1st part is your current amount and the 2nd part would be the extra amount you want to plonk on top. You can normally do this quite easilly via a standing order from your current account.