Provident Early Settlement

the_wee-man

Hi all, new to the forum an just looking for a bit of advice.


I have a personal loan with provident(only option available to me at the time), I'm now looking to settle this loan in full and was wondering what sort of figures I should expect to pay?


I borrowed £2k over 110 weeks at £40 p/w the total credit amount is £4320 and the remaining balance is £3450.


I think I was being naïve in thinking I'd be paying back a lot less than I actually will.


Thanks for any advice an thanks for reading.

[Deleted User]

You'd need to tell us the rate and how far into the term you are for someone to help.

But regardless, remember that the bulk of your early payments are paying off interest (as the capital is higher). So being halfway through the term for example, doesn't mean that you have paid half the capital off.

Tixy

Hi
When you say the remaining balance is £3450 - do you mean that is the capital balance outstanding or is it the settlement figure they have given you, or is that the amount of remaining payments if it runs to full term?

the_wee-man

Hi thanks for the reply's the figure of £3450 is the remaining amount due over the full term.


Also I am 22 weeks into the 110 week agreement.

Tixy

My (quite rough) estimate is that your balance now will likely be around £1850 and they will likely add on early settlement interest equivalent to 2months interest (check your T&Cs) which would be around £200, so your settlement figure may be in the region of £2050.

This is just a rough calculation, if you know the APR from the loan paperwork that would help give you a better estimate.

the_wee-man

Ty for your reply's Tixy this is the amount I roughly thought when I first knew I was paying it off, but then started thinking that they will probably just knock off 10-15% of remaining amount due, will go look out the contract just now an have a good check.


Again thanks for the advice.