help in paying off a loan early

Doglover88

I've got a loan that I wish to pay off early, my monthly repayments are £389 and go out on 22nd of every month. There is approx £10k remaining. I'm planning on paying it all off early but want to avoid an early redemption penalty if at all possible. Hows best to do this? Last time I paid a loan off early they added £60 approx to the balance when I rang up for it so I was wondering how to close it off and avoid any extra charges

jinkssick

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1102967078,41318,

martin explains it pretty well.

Doglover88

Cheers I've read through it but am struggling with my sums

currently paying off 389.10 a month and have been given final settlement figure of 13562.34 (this includes the penalty of 56 days interest = £133.38)

Payments go out on 22nd every month, so how musch should i pay off to avoid the penalty?

jonesMUFCforever

The total amount owing less the penalty fee and less one month's repayment (hope that's clear!). You then let the normal repayment go through and ask the bank to close the loan.
There might be a few quid in residue interest but the penalty fee should have dissapeared.