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Paying off Loan Early??
BevMarsh83
Posts: 3 Newbie
Hi all
I took out a loan with Northern Rock (now NRAM) back in 2006. The cash loan was £12,749.82, total amount payable £21,370.80 (11.9% APR paying £178.09 per month for 10 years.)
However, back in August 2007 I started paying my debts through the Consumer Credit Counselling Service (CCCS). My monthly payment amount did drop slightly after this time as I was paying off other creditors. However, I started paying more than my agreed monthly payment with NRAM (£178.09) from October 2009.
Now, as I've paid off all my other creditors :j I am currently paying NRAM £561 a month. I called up NRAM today to get my total remaining balance - this, I was told, is £7,858.89.
If I continue to pay at the rate of £561 a month I will have paid off the total loan balance 3 years before the 10 year term in my original agreement. The total debt (£21,370.80) included interest calculated over 10 years, but by paying it back in 7 years should this now acutally reduce the total debt??
I've emailed this info to NRAM (I did speak to them when I called to get my remaining balance, but the man was less than helpful!). Still waiting for a reply, but wanted to see if anyone on here could offer some advice??
Thanks
I took out a loan with Northern Rock (now NRAM) back in 2006. The cash loan was £12,749.82, total amount payable £21,370.80 (11.9% APR paying £178.09 per month for 10 years.)
However, back in August 2007 I started paying my debts through the Consumer Credit Counselling Service (CCCS). My monthly payment amount did drop slightly after this time as I was paying off other creditors. However, I started paying more than my agreed monthly payment with NRAM (£178.09) from October 2009.
Now, as I've paid off all my other creditors :j I am currently paying NRAM £561 a month. I called up NRAM today to get my total remaining balance - this, I was told, is £7,858.89.
If I continue to pay at the rate of £561 a month I will have paid off the total loan balance 3 years before the 10 year term in my original agreement. The total debt (£21,370.80) included interest calculated over 10 years, but by paying it back in 7 years should this now acutally reduce the total debt??
I've emailed this info to NRAM (I did speak to them when I called to get my remaining balance, but the man was less than helpful!). Still waiting for a reply, but wanted to see if anyone on here could offer some advice??
Thanks
0
Comments
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Read the terms and conditions in youragreement everything will be there / some loans are pre loaded .GRADUATED FIRST CLASS WITH HONORS FROM THE SCHOOL OF HARD KNOCKS RECOMENDED READ IF BY RUDYARD KIPLING0
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Will do, thanks0
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