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Devilboy

Hi. Couple of points; I owe WF £21k after borrowing £26 6 years ago. I have 3 years left and I pay £270 per month. WF have recommended increasing the payments to £500 per month as they say this will save me £8k in interest alone, however, the say they can't put a payment schedule together as it's just an approx saving. I'm aware WF are winding up, are they just trying to recoup as much as possible quickly?

I also have £10k in savings, would I be better off paying a lump sum towards the loan to reduce my monthly payment/term time?

Thanks.

[Deleted User]

If they allow overpayments, then the quicker you pay off, the less interest you pay.

Tixy

You owe £21k, have 3years left and pay £270 a month?

3years of payments is only £9720, looks to me like you have a lot more than 3years left to pay.

Have you got behind with payments in the past?

Devilboy

I have just paid £300 in arrears. I now owe them an additional £300 then all my arrears are paid off.

Tixy

If you've had arrears then the amount of interest you will pay overall which be far in excess of what was originally calculated on your agreement. So your loan won't be paid off for a lot longer than 3years if you keep up with this level of payments, a a very quick guess its more likely to be more than 15years at £270 a month.

Even if you up payments to £500 a month the debt won't be clear within 3years, unless you can also pay a lump sum off.

If you have savings or any way to pay more off this debt each month then I would certainly do so. At the interest rates they charge there is very little chance that there is any better place for your money than reducing this loan down.