Quickest Way to Pay off a Loan

CD_Man

Hi - I have a £30k loan that I have 4 out of the original 7 years remaining on - Im paying £337 a month on top of my mortgage that I took out last year and I need to get this cleared asap as its crippling me - I dont want to extend it or add it to my mortgage as it'll cost me more in the long run. Anyone have any ideas on how & if I can do this?

The loan is with Natwest & its basically debt consolidation loan x 3 over the years - I have learnt my lesson & am much better with my money now

Thanks

Seaxwyn

HI CD Man

Can't help but oh how I sympathise. I have a NatWest loan also. If it's any comfort I'm paying even more than you - £386.86 month for 7 years and the original loan was only £25k. Oh how I hate that loan.

If your loan is the same as mine, you can pay off lump sums any time then either reduce the term of the monthly sum. You have to pay 2 months interest as a fee each time you do this. So it could be worth saving in a high interest account til you get a sum substantial enough to be worth losing the 2 months interest for.

I'll watch this thread with interest as I would dearly love to get rid of this particular millstone.

good luck, Seaxwyn

LandyAndy

As usual the first thing for you to do is post your SOA. Until then we can't help very much.

Uniscots97

I'd second posting the SOA.

chevalier

If you can overpay your loan then,
can you get a second job, with the money from this going into a separate account to save up a lump sum
have you got anything you can sell on ebay/carboot, or books on amazon/greenmetroplis? Again to save towards a lump sum
chev

bandraoi

Shop around and find a better loan deal, ie one with a lower interest rate.
Possibly move some or all of it to a life of balance or 0% card.

CD_Man

My SOA is:

Take home pay £1748

Mortgage £732
Council Tax £79
Mobile £35
Gym £38
Loan £337
Homechoice £13.99
0% Virgin Card - £100 a month, £3k owed have paid off £1k since Aug 06
0% (til July) Natwest card - £100 a month £3k owed - Have paid off £1k since Aug 06
Petrol £60 per month
Shopping £70 per month

£1565 roughly not including months where I have to pay water, electric etc

The loan I have doesnt allow me to pay extra in - If I could clear the 2 cards that would help aswell.

CD_Man

Bumpety bump!

oliveoyl

you seem to be spending a lot on your mobile a month, are you tied into a contract?
do you really need the gym?
what's homechoice?
when does the 0% on the cards finish, and what does the rate go upto?
how do you pay gas & elec? have you looked at switching (and also getting cashback for doing so)? and paying by direct debit as that's usually a bit cheaper?

oliveoyl

also look at increasing your income. extra hours at work, part time job in the evening, selling on ebay etc.

CD_Man

I am looking for a new job at the moment, if I can get an extra £3k PA I'll be ok - not much of an increase but the minimum I need!

Ive just switched to T-Mobile Flex 35 contract, I was with Orange before this and my bill was at least double this. Homechoice is broadband, landline, & TV - half price via work.

After the 0% end the cards will go up to 16.9% & 18.4% but I will just switch them to another 0% deal, I have 4 cards but only 2 have outstanding balances. The gym im tied in for a year, I ride a motorbike to work and dont get any exercise other than the gym so dont really want to quit that - riding a motorbike to work works out around £60 a month cheaper than the train for me, even the insurance is less than a months train fare!