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Partial Early Loan Payment v Savings
Hi,
I have a loan with a fairly low APR of 6.9% with Nationwide which was for £13k over 60 months. I am 15 months into it but in a position to make a partial payment of £3k towards it to reduce the term of the loan. The £3k is currently in an ISA and not earning a great deal of interest (2.75% I believe). With these sorts of rates is the partial loan payment a good idea ?
Any thoughts - pro's / con's
I have a loan with a fairly low APR of 6.9% with Nationwide which was for £13k over 60 months. I am 15 months into it but in a position to make a partial payment of £3k towards it to reduce the term of the loan. The £3k is currently in an ISA and not earning a great deal of interest (2.75% I believe). With these sorts of rates is the partial loan payment a good idea ?
Any thoughts - pro's / con's
0
Comments
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The mathematics dictate that you pay the loan off.
There may be other issues, but based on the information given,pay off the loan.Space available for rent0 -
As already stated it makes more sense to pay into loan but so many other factors to consider, is the money an emergency fund, cause once you pay it into a loan it can be withdrawn.I owe £3233 @ 0%0
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