Want to settle loan but massive early fee - HELP!

atypicalblonde

Morning lovely DFWs,

My OH and I are very lucky to have found ourselves in the position to be able to pay off the personal loan that we have early. We are really excited, as not only will it be one less debt, but the interest is 19.9%, so we have wanted to get rid of it quick-sharpish!!

However, there is a £250 fee to settle it early. The loan to settle it is £4500, which would make it £4750 including this fee.

Is there any way around it? My brain is thinking along the lines of overpaying, say, £4300 so just leaving £200 left to pay (which roughly equates to one months payment)? Or will they notice what we are trying to do and not allow it?

Hope this isn't a really dim question - better to ask if there is a way we can avoid it than just shell out the £250 extra I thought?

Thanks in advance, any help/advice would be appreciated

MustStopSpending

I don't think there is a way around the early settlement fee but I'm sure someone will be along who knows for sure!

Avogirly

I think you can pay a chunk off of it, just leaving one months payment. When I started my loan I asked my bank about this and they said (unofficially), that's one way round not paying the early settlement fee.

How are the bank to know that you have all the money to pay off the loan, they might think that your just paying off a massive chunk, which just happens to leave one months payment left

kevin_M

yes IF the loan lets you overpay make a overpayment.. its a way around having to pay the settlement fee