Paying off a loan early

k_moor25

Hi im thinking of paying of my loan 2 years early I was wondering how much intrerst would get deducted from the loan if I did this?

DCFC79

Is it not in your contract/T&C's

k_moor25

I no idea where it is , does intrest useally get deducted when paying a loan off early?

DCFC79

k_moor25 wrote: »

I no idea where it is , does intrest useally get deducted when paying a loan off early?

I know from reading these board that some loans you get charged a fee if you pay it off early.Cant answer the question about the interest.

jonesMUFCforever

No interest will be deducted as most loans these days charge daily interest on personal loans and apply it monthly.
Where you save is that you will not be charged any further interest on the outstanding amount that you repay.
You need to ask for a redemption figure - beware there probably will be an early settlement fee of about 2 months interest.
There are ways around this.

CLAPTON

k_moor25 wrote: »

Hi im thinking of paying of my loan 2 years early I was wondering how much intrerst would get deducted from the loan if I did this?

you save money by paying early

the amount rather depends upon the amount of your current debt and the APR of the loan

easy to find out however

1. current total payment will be = monthly payment x number of payments left


2. ask for a settlement figure (get it in writing)

3. then compare the two figures