only need a 20k loan for a few months

rasputin

i'm confused, basically, i need 20k now, then will gradually overpay until i repay completely next march.

however, from what i have read, it seems if i take a 60 month loan for 20k, and i repay early in just 3 months (with say northern rock), I have to pay ALL the interest for the 60 months as well as the original 20k loaned out?

can someone clarify for me?

thanks

justruth

As I understand it, and please check with each individual lender before taking it as gospel, they ask that you pay the interest to cover the 60 months, then refund the remaining interest. Silly I know but it's so they can make more out of you. Some however will offer a settlement figure once the loan is up and running.

rasputin

just got off the phone with northern rock..thats exactly what they said..a settlement figure, plus their loans are front loaded, so the payments for the first few months will be entirely interest...