Paying off a loan

oliviarosejackson

Hi everyone,

I was wondering if anyone could help us? We have a loan with the Halifax with we took out in June last year to pay for a car, we borrowed £7,000. This is over 7 years and we have monthly repayments of £134. The APR is 15% and we will end up paying a little ove £11,333 back! We have been trying to think of ways to pay it off quicker.

We have some money coming to us from rebates which should add up to around £600 and we are getting married in April and are having a wishing well, so hopefully should get a nice lump of money from that. I am hoping if we are lucky we will have £1,000 come April and any money of our own which we can save from now until then.

We were thinking of paying off this lump sum we will have off the loan and then getting a 0% credit card and pay off the outstanding balance of the loan. Then throw the £134 at the CC each month and any extra that we could. Then once the 0% balance runs out transfer it to another one.

We are very sensible with our money and we don't have any other credit cards and would not use it for anything else. We are just trying think of the best way to pay off the loan quicker and save on inteest, etc.

Thanks in advance for any help.

lamarsi

seems like a good plan, just wondering does the loan have penalties if you re-pay it earlier than agreed.. I have a Halifax secured loan and called them to make sure that there are no penalties before I started to make over payments and thankfully there aren't ...but £6000 on a balance transfer to a cc fills me with dread!!

oliviarosejackson

lamarsi wrote: »

seems like a good plan, just wondering does the loan have penalties if you re-pay it earlier than agreed.. I have a Halifax secured loan and called them to make sure that there are no penalties before I started to make over payments and thankfully there aren't ...but £6000 on a balance transfer to a cc fills me with dread!!

Thank you for the reply We would need to ring Halifax to find out, but hopefully ours is the same as yours.

How do you make your overpayments? How does your term of your loan reduce with your overpayments and the interest that you pay?

Sorry for all of the questions.