£1 loan payments, orangutans and learning it doesn't all happen overnight...

DebtFree2012

Hi hun

After some advice on the overpaying the loan pls. My balance at 24th was 3486.86. I have paid 464.24 so new bal should be reduce by that but it's out by a fair whack. Now when I have called the bank today then said it's cos interest is added daily. I don't think she knew what she was talking about as she said it's best to pay monthly as the interest is reset to 0 every time you pay. She couldn't explain what she meant and I have no idea.

I am overpaying daily and understand that if you pay interest daily it's better to pay so less balance for interest to be calculated on?

I'm going to start taking a note of my loan balance every day and seeing what's going on. Any ideas how it works?

She also said you can't pay online yet I am and she said she'd learnt something new?!

xx

Kepp

mrsb83 wrote: »

I would probably make more £ but to be honest I am so unmotivated to wrap and send that I love the idea of one box for everything. I'm also impatient and don't want to be hanging around waiting for them to sell. Not very MSE!

Not very MSE but I know the feeling I did comment on that to OH last night when it took me 45 mins to wrap two books! His comment? Never mind - with the amount of things you have to sell, you'll be an expert at wrapping by the end of it! Not helpful :rotfl:

Kepp

DebtFree2012 wrote: »

After some advice on the overpaying the loan pls.


xx

Hi DF

Who is your loan with if you don't mind me asking?

Mine is Lloyds. Which although the interest is calculated daily is it only added once a month. So, paying every day helps with the interest as the daily amount goes down along with the balance if that makes sense?

The interest for mine is added the day before my minimum payment goes out, and then the balance goes down the next day when the minimum payment clears. This has always been the case whether I overpay or not.

Overpaying online isn't straightforward for mine - I can't set up a payment as I do with CCs - I had to set up a standing order and amend it each time that I make a payment.

This was very confusing at first - especially as I got such conflicting information from various Lloyds staff as to how I could pay.

It takes a few days for each SO to clear - I note them down on my spreadsheet and then tick off when my balance catches up so that no payments go amiss.

My overpayments don't affect my minimum payment at all - some CCs it has, but my loan stays at £140 a month no matter what.

Hope all of that makes sense!

DebtFree2012

Thanks hun

It's Barclays. They said it's added daily so whether she is right I don't know. What you've put makes perfect sense and I amnow at the conflicting stage that you were! It should be gone by Oct however I am worried that I am affecting the interest unduly (being charged more for overpaying?) and effectively paying more than if I saved up and paid it off in full.

I shall keep the numbers for a month and see how it pans out. I've got all my payments noted, just need to make sure I take note on the balance total at the end of each day.

Your new balance is AMAZING!!!!!! I can't wait to see you clear that one! Will you be calling them to say erm.....see ya!!! ?

xxxx

Kepp

This is the problem - none of them seem to know what they are talking about! :mad: Good idea to keep a track of your figures like you say. Hope it rights itself in the end.

I have to call to end it as there will be a small charge - it's 58 days interest on the final balance, so I will make sure the balance is £1 before I do Can't wait for that phone call!

mrsb83_2

beccie wrote: »

Not very MSE but I know the feeling I did comment on that to OH last night when it took me 45 mins to wrap two books! His comment? Never mind - with the amount of things you have to sell, you'll be an expert at wrapping by the end of it! Not helpful :rotfl:

I'd have chucked a book at his head! Although he is probably right...

DF I had problems when I started overpaying my loan online. The first woman I spoke to was completely wrong and gave me duff information. I wasn't getting anywhere so I phoned someone else the next day who gave me the right info.

My interest is actually applied quarterly so I don't have any specific advice about your payments, but I would recommend you call the bank and don't hang up until everything's been explained to you properly. Ask to speak to a supervisor or account manager if the rep can't give you good information.

Kepp

mrsb83 wrote: »

I'd have chucked a book at his head! Although he is probably right...

DF I had problems when I started overpaying my loan online. The first woman I spoke to was completely wrong and gave me duff information. I wasn't getting anywhere so I phoned someone else the next day who gave me the right info.

My interest is actually applied quarterly so I don't have any specific advice about your payments, but I would recommend you call the bank and don't hang up until everything's been explained to you properly. Ask to speak to a supervisor or account manager if the rep can't give you good information.

I felt like it - only problem is then I would probably have to have re-wrapped the damn thing!

Good idea with the loan - I've found that with a fair few companies, keep calling back till you speak to someone who sounds like they know what they're talking about

Happytogetdebtfree

Good day re overpaying loans i think either way is technically the same, you save up and pay off the loan the deduct intrest as loan balance is paid off early so they cant charge intrest past the point of payment, you pay daily less loan to put intrest on i just dont think they like that we are overpaying, im saving and paying off in full but each to there own bec you have started a craze in the world i think its suffice to say that by the end of this year bankers bonus's wont be all so big because they will have less people with credit owed to them and less people signing up to deals xx

Kepp

Think that works for front loaded interest loans - for the daily ones it's definitely worth paying as and when. My monthly interest for my loan has reduced from £70 odd to about £9 a month

Wouldn't that be nice to think we are taking their bonuses away

Checking my spreadsheet I am amazed really. At my LBM I was paying £500 a month in interest :eek: Now, I have £34 interest left to pay in total until my DFD :D

Happytogetdebtfree

Thats amazing bec, before my lbm i had no idea what i owed i just knew money went out of the bank and we didnt have a spreadsheet so to speak now i dont know how id cope without one i like to see what my money does