Lloyds tsb loan help

AshMan_2

Hi

First time poster here looking for some advice,

Early last year i took a loan out with tsb paying back £333 per week until november 2011. I know owe £5900 no other creditors. I was made redundant last month and whilst i am stil in a postion to make payments I have savings of £2600 some advice needed on whats for the best.

1 Pay £2600 straight off loan less interest that way or

2 Leave all money in look to pay off next year

With Regards

Tixy

You probably need to look at your loan agreement to see if overpayments are allowed and whether they will reduce the term of the loan or the amount of the monthly repayment for the rest of the loan.

Do you mean £333 per week or is this per month? is this the contracted amount? can you afford to continue to make the payments at the contracted amount for the rest of the loan?

AshMan_2

Tixy wrote: »

You probably need to look at your loan agreement to see if overpayments are allowed and whether they will reduce the term of the loan or the amount of the monthly repayment for the rest of the loan.

Do you mean £333 per week or is this per month? is this the contracted amount? can you afford to continue to make the payments at the contracted amount for the rest of the loan?

Appologies for not being clearer.

Its £333 Per month which I can afford with savings (work self employed so weekly income can fluctuate. Overpayments are allowed and because TSB Loans interest is added at the end of every month I presume that it will lower the monthly payment whilst keeping the length of the loan the same amount of time.