Loan over payments

Johnnybegood

Hi,
I've currently got a Sainsburys loan with a balance this morning of £13.728 at 8.4% which is due to finish in Nov 2017. I'd like to reduce the term of the loan and Sainsburys have said that I can set up a standing order quoting my agreement number in order to do this. I was thinking of paying an extra £50 a month to the current £211. Can anyone explain if there are any downsides to this and if this is a good idea or not? any advice welcome.
Many thanks in advance Johnny

cripes_2

Yes!!! Its a great idea,

I think for most loans the interest is calculated on the actual balance including any overpayments so you pay less interest in the long run.

dont reduce the term of the loan just overpay which will give you flexibility if you need a month where you dont want to overpay,

Simple!