Car Loan

maddog25

Scenario,

I have a car loan with Lloyds TSB for £5000 at a interest rate of 8.9% over 5 years. I will pay about 1300 in interest. I have had the loan since Sep this year and paid about £400 off.

However i have £3000 in Tax and Working credits, i am debating where to use this and pay off my loan. I am not so keen as i have herd of stories people having to pay back work and tax credits because they have had too much.

Should i wait until April and see what happens when my circumstance is reviewed?

Advice would be helpful. Liam.

nomoneytoday

I would stick it in an ISA until the review in April. If they claim it back you have earnt some interest, if not then then pay it off your highest APR debt..

Xbigman

Firstly go to the benefits forum on here and ask about checking your entitlement. They can direct you to a site that will work out you entitlement for you. Sorry I can't remember the web site address but they will give it to you.

Personally, I would definately pay the loan off now. If they want anything back then make an arrangement to pay it off interest free.
Regards



X

Tom_Saunders

why do you think you have been overpaid ?