Advise regarding my Loan

StuC75

Yes as the 5 payments you make in the meantime, create a cumulative almost 'pyramid' type approach to the saving that you make, e.g.

At
Month 0 - Pay £200, Pay 2 months Interest, But Save 4 Months
Month 1 - Pay £200, Pay 2 Months Interest, But Save 3 Months
Month 2 - Pay £200, Pay 2 Months Interest, But Save 2 Months
etc..

So at the end of the 6 months; 2 Months (58days) interest on £1200 or 6x£200 is exactly the same.

But have saved further months interest on the extra amounts paid..

In reverse If you were saving money and interest calculated per day, it would earn more interest to pay £200 in each month, rather than just lump sums.

carl5363 wrote: »

Am I best paying £200 a month overpayment then? I was going to save that money and then pay £1200 off in 6 months time.