Paying off loan advice

stevobreen73

Earlier this year, we sold our house and moved in with my in-laws to help pay off £17,000 loan. Paying about £374 a month in repayments.

We're now almost at the stage where it can be fully paid off but if we do this next month, we'll go into our overdraft by about £2000. (The overdraft limit is £3000.)

Would you recommend doing this to prevent further loan payments and then work on bring down the overdraft.

It seems like the obvious choice for me when you balance the loan payment vs 1 month of overdraft charges.

Any advice would be much appreciated!

happy_bunny_2

Depends if any refund in loan interest would cover the OD fees. If not, I wouldn't bother.

Check the loan terms for early repayment fees, interest refunds etc.

gfplux

You just have to balance the cost of £2000 on your overdrafts for how many months against the refund (if any) of interest the Loan company give you for paying off the loan.
Simples

teabody

I would personally stick with your current payments (for the time being)as the overdraft can be called in at anytime by the bank and then you might be worse off! If it meant saving loads in interest on the loan then I might be tempted but overdraft charges aren't kind either....you might be putting too much pressure on yourself when you are doing so well. Hope it works out for you....