settlement figure

chrischat

I took out loan in March 2005 for £5,700, repayable over 7 years at a rate of £109 monthly, payments beginning June 2005.

Now 5 years later and regular payments all the way there is £2,642 still owing. I phoned about it she said the original loan was for about £8,700 including interest etc.

I asked for an early settlement figure, was told I would be given £68 reduction on total still owed, so still £2,574 to be paid in lumpsum and she advised me it would be better to pay this now if I can rather than continue at £109 monthly for next 2 years.

I have been on disability allowance for 3 and a half years- does anyone know whether there's any possibility of reducing the settlement figure?

Thrifty_Pixie

I'm no expert, but I don't think so if you haven't defaulted on the payments thus far, as you have been handling the agreed loan arrangement just fine.

I think the only way you could reduce the settlement figure would be if you'd defaulted on the loan (not ideal, and would affect your credit record) and then offered a reduced full and final settlement. But I wouldn't advise this

Maybe someone else knows something that I don't though...