Pay off as much as you can in 2011 Challenge!

mmikailian

Advice please?

Been over paying my Loan with the halifax and they said that it will just sit there until the amount i have is enough to over pay loan and that i will still pay interest on the amount and will not earn any interest on the overpayment? is that right?

I still have £5000 available on my MBNA card interest free until may 2012 maybe i should just tranfer to that and clear asap? he tried getting me to add to my morgage and i said no thanks

Any advice?

lou06

Morning

Just transferred £10.36 today from paypal to the EGG card, this was extra for doing surveys. I had mentioned that I was dead chuffed earlier in the week making over payments of £68. Only to check online, Egg charged interest of £51.36 - this has given me more determination to get it cleared ASAP. Free Ebay listings this Weekend! You know what I'll be doing!!! Oh Such Fun!

JWIL updated sig, but I will be making my other DD payment on the 22nd.

Lou x
Lou x

nickynoo08

Morning,

have paid another £25 extra to our loan today

running total now - £622.17/£6000

sarahs999

£115 overpayment to Virgin - knocking it under £2k, hoorah!

jwil

mmikailian wrote: »

Advice please?

Been over paying my Loan with the halifax and they said that it will just sit there until the amount i have is enough to over pay loan and that i will still pay interest on the amount and will not earn any interest on the overpayment? is that right?

I still have £5000 available on my MBNA card interest free until may 2012 maybe i should just tranfer to that and clear asap? he tried getting me to add to my morgage and i said no thanks

Any advice?

That seems a bit weird to me, but I'm not an expert. I would hope that any overpayment reduces the balance and the amount of interest you pay overall, but not change the monthly payment. So effectively you reduce the term. Maybe ask on the loans board for clarification?

Is the £5k on mbna more than your outstanding loan balance? You would pay presumably a 3% transfer fee as well. I would ask for a settlement figure for the loan, find out if there are any early redemption charges, and try and figure out which would save you the most money. If you can't pay off the whole amount before May 12, you will be on a much higher interest rate unless you can get another balance transfer.

If it winds up cheaper to keep the loan, and your overpayments are not really making any effect, then can you pay off another debt instead? Or make the overpayments to the highest paying interest account you can find until you have enough to settle the loan.

jwil

sarahs999 wrote: »

£115 overpayment to Virgin - knocking it under £2k, hoorah!

Hurrah! :j

jwil

Thanks for all of the updates everyone!

I might not be around too much next week as I've got a week off. I'll try and pop in to keep up, but we'll see.

Hope you all have a good weekend!

peaceandfreedom

jwil wrote: »

Thanks for all of the updates everyone!

I might not be around too much next week as I've got a week off. I'll try and pop in to keep up, but we'll see.

Hope you all have a good weekend!

Have a great week off, Jwil.

sarahs999

So I need another £229 this month to meet my monthly target. Better get ebaying I guess!

DedicatedDFW

Hi All,

Really like to make sure I pop in here every day as i find it really motivating. :j:j Today I have transferred more funds from e-bay sales to target 1 so am now at: £1011.31/£10,000.

well done everyone! x