Which is better????

sallyx · 22 January 2007 at 4:19PM

Ok so here is a question to all you experts out there. Im trying to pay off all my debts in 2007 by selling everthing I can, earning money from click throughs and any other way possible. What I want to know is this. When I earn the money is it better to put it into a savings account until it has accumulated and then get a full and final offer or should I make over payments on the debt monthly or every 2 months?? I'm guessing it depends on the interest rate and other things? Come on you experts need your help

flowerofscotland · 22 January 2007 at 4:25PM

Are you paying interest on your credit cards and loans? If so then it is better to make overpayments.

The snowball calculator at https://www.whatsthecost.com should help to show how the overall debt will decrease because you will pay less interest

crawley_girl · 22 January 2007 at 4:30PM

flowerofscotland wrote:

Are you paying interest on your credit cards and loans? If so then it is better to make overpayments.

The snowball calculator at https://www.whatsthecost.com should help to show how the overall debt will decrease because you will pay less interest

Ditto what flower said!

CLAPTON · 22 January 2007 at 4:30PM

why do you ask about Full & final settlements... have you defaulted on your debts or made arrangement to pay less than the minimum contractual payments?

crawley_girl · 22 January 2007 at 4:38PM

or maybe the term 'full and final settlement' has been confused with another term... you know... the one that means that the money has been repaid -settled?

immoral_angeluk · 22 January 2007 at 4:46PM

Well we're doing it by saving all our money and then paying off the debt once we have enough to pay it off in full. Feels like more of an achievement for us and keeps us motivated that way but obviously if you are concerned about the interest then it's better to pay if off by making overpayments.

CLAPTON · 22 January 2007 at 4:48PM

crawley_girl wrote:

or maybe the term 'full and final settlement' has been confused with another term... you know... the one that means that the money has been repaid -settled?

maybe, but can't give proper advise until the situation is quite clear.

crawley_girl · 22 January 2007 at 4:56PM

Totally agree Clapton

Bells&Whistles · 22 January 2007 at 5:01PM

I am having to save up to make significant lump sum payments on my loan (although have had a minor "sales" setback) I find (found) it was easier to chuck it all in my savings account and watch it mount up !!

sallyx · 22 January 2007 at 5:03PM

Sorry guys had to pick Dh up from work. Yes I am paying interest on Loans and in terms of the full and final settlement I thought that maybe I could offer less than the outstanding amount left on the loan if I were to pay it off early. I maybe completely under the wrong impression or using the wrong term for it! I understand that if I pay off early I would get rebate on interest but wondered if they would reduce it (I haven't defaulted or missed any payments!)
Thanks for all your prompt replies

crawley_girl · 22 January 2007 at 5:15PM

Some loans will charge you an early redemption penalty and some will not allow any overpayments! Check the terms and conditions when you signed

Which is better????

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