Avoiding early settlement charge with Sainsbury's fiasco

tonkinator

lau28 wrote: »

Hi Tonkinator, I paid the settlement figure my loan with Sainsbury's last week, however I didn't think to look into paying off a large amount first and just a small final payment. Anyway that is my fault for not looking into it before, however I seem to have almost all of the interest from a 3 year loan which I paid off in just 17 months, I know the interest is more at the beginning of the loan but seems I paid a lot. I have been told not to cancel my direct debit as if there is an overpayment it will will be refunded to me in this way, but I don't want to wait long if I am going to get a refund, did you have to wait long?

Hi Lau,

It didn't take too long, can't remember without checking paper work but around 2 weeks, maybe slightly longer.

Remember, in the early months on the loan, you are paying off a higher ratio of interest:capital so the later in the agreement you pay the balance off, the less you save.

It's not as simple as "pay it off halffway through and you save half the interest."

Good luck, hope you get it sorted

tonkinator

Forgot to add when I last posted, I was given a £30 voucher for my troubles in the end!