Want to pay off barclayloan quicker

Andybez38

I have a current barclayloan with around £9000 outstanding. When i went into my branch and enquiered about paying more off each month, when i could afford it. I was told i couldn't do that and the only way was to restructure the current loan. Is this right?

Turtle

quite possibly. many lenders do not offer this more flexible facility so yes, i would be inclined to think you have been told correctly. there are some lenders who will allow you to overpay, and someone much more knowledgeable than me will no doubt be along to tell you who. just out of interest, when did you open the loan? if its an old style rule of 78 opened before 31 May2005) then interest is front loaded and if you're more than a couple of years or so it might not be worth restructuring due to the amount if interest you'll have already paid. if this is the case, you'd be better (i would think) putting the extra you could pay off into a high interest a/c then paying off early instead when you've saved enough.

georgiasmum

I have a barclayloan that i will be repaying early due to an little windfall from my mum. Barclays charge you a penalty for early repayment comprising of a months interest and an administration fee. It is a rip off but I'll pay it to be clear of all debt other than my mortgage. If you want to overpay I imagine you can but I don't know how they will work it out with the penalties. Good luck

crawley_girl

I had exactly this problem.

What I did was transfer the money into a non-Barclays account and then transfer it into the loan account all online. I left about £100 owing so that the last little amount was taken by direct debit and hey presto - loan was cleared and no charges or penalties incurred. I was then refunded my overpayment of a further £100 or so...

If you just want to overpay and not clearing, I suggest doing it online from a non-Barclays account... worked for me before I cleared it.

Good luck

:heartpuls CG :heartpuls

georgiasmum

Good idea. I will do this!! Will save a few pennies!!:beer:

smb-uk

If you want to avoid penalties or if you cannot make over payments you could just put the extra payments into a high interest savings account which will off set the loan APR.

Jaymz

I had exactly the same problem, in the end I took out a loan with Nationwide and paid off the Barclayloan. Nationwide allow overpayments and the interest rate was only 6.7 compared to the silly one I had with Barclays.

captiva

Hi,

I know this is reviving an old discussion, but I just wanted to be sure on this - if you make the payments from a non-barclays account into your loan account, it avoids all early repayment fees?

Thanks!

captiva

Could anyone verify the above?

crawley_girl

Yep. Confirmed and verified!

BONJOEY

is that true? so if you have a loan, you can just pay extra into that account from a non barclays account and the balance will be reduced? without no penalties etc,