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Savings to Lower Loan time
JackyHappy
Posts: 30 Forumite
I wonder if anyone could advise.
After successfully receiving ppi payments, I currently have a loan taken last year February, of £15k, which is now £12897 which I took out for re-financing over 7 years! I was told I can pay extra on the loan to decrease the time factor of the loan.
I'm paying £331 per month and I estimated an extra £70 on top for 12 months equalled to approximately £840. Would this bring the loan down to 3 years?? The first lot of ppi is just sitting in a regular savings account which doesn't have any interest worth speaking about and at the moment I can't see the benefit of saving for what I'd be receiving in interest payments. I'm thinking it would be best served to put some on the loan to lessen the burden. My partner and I need to get a mortgage as we want to live together, however, I'm concerned about having such a debt would inhibit my chances of obtaining a mortgage. Plus I have a NatWest credit card (wonder if there's PPI on that one:question::) ) with approx £1100.
After successfully receiving ppi payments, I currently have a loan taken last year February, of £15k, which is now £12897 which I took out for re-financing over 7 years! I was told I can pay extra on the loan to decrease the time factor of the loan.
I'm paying £331 per month and I estimated an extra £70 on top for 12 months equalled to approximately £840. Would this bring the loan down to 3 years?? The first lot of ppi is just sitting in a regular savings account which doesn't have any interest worth speaking about and at the moment I can't see the benefit of saving for what I'd be receiving in interest payments. I'm thinking it would be best served to put some on the loan to lessen the burden. My partner and I need to get a mortgage as we want to live together, however, I'm concerned about having such a debt would inhibit my chances of obtaining a mortgage. Plus I have a NatWest credit card (wonder if there's PPI on that one:question::) ) with approx £1100.
Current loan £12,295, Overdraft £550, Natwest C/Card £1295, - AIM - TO SMASH THE JOLLY LOT 
PPI Success: Lloydstsb loan £2,600 :T, Lloydstsb Visa Credit Card £3,225
PPI Success: Lloydstsb loan £2,600 :T, Lloydstsb Visa Credit Card £3,225
0
Comments
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What is the interest rate you pay on your loan?
What is the interest rate on your credit card?
If you overpaid the loan repayments, are there any penalties associated?0
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