early repayment of loan

smileyperson_2

Hi there

I have 33 months left on a 5 yr loan, I have come into some money so I can pay the remainder of the loan off and save about £1300 off the interest as long as I pay £166 early redemtion fee. Is this the best way to pay the loan off or are there other ways in which I can save more off the interest? Would it be better if I paid some of it off still kept a small amount going for the remainder of the term. can anyone advise please?

Thanks

bengalknights

Usually the best way is to settle early unless there is a penalty which means it cost more then the orignal loan term.

CLAPTON

if overpayments are allowed without penalty then pay off almost all the debt except a couple of months payment and then simply allow the loan to be paid off.