What should I do?

Gemma222

Hi, I'm new here and would appreciate a bit of advice.
I took out a loan with Argos in Oct 2004 for £3000 at 15.8% for 5 years. I have been paying £70.99 a month.
I am now in a position to repay the remaining balance but I have a few questions which I hope some of you can help with.
Firstly I have asked for an early repayment figure and am told it's £2158, does this sound right?
Also is it better for me to repay the figure now or put the money into a new account with a direct debit set up and either let the balance gradually go down for the next 2.5 years or repay it at some point in the future when the settlement figure will be lower?

Thanks for any help you can offer.

Gemma

chani1

it sound like there interest is front loaded which means you pay the most of interest the first year or more, also if you have protection on there too it doesn't help if you have req to cancel this as the fig should reduce quite alot.

mrcow

The monthly figures look correct, but the interest is obviously front loaded so there is no benefit to paying this off early now (settlement is £2158 whereas if you paid it off as per schedule, then total to repay is only £2200).

You'd be better to earn the interest and pay the loan off gradually, but it all depends on whether you want the loan against your name for the next 31 months? Personally I'd pay it off and be shot of it (and don't use Argos to borrow money again! ).

The figures don't indicate any PPI.