can anyone work my early settlement

ice_babe

Hello. Me and hubby have been regularly overpaying our sainsburys loan (100 here and there ect). I have just made a huge overpayment of £5300 just wondered if anyone can work out how much we have left to pay?

I have a letter from January that states our remaining total is £6474.47 and that our monthly instalments are £154.58 with a final instalment of £136.71 there are 42 months left and interest is 6.7% ). Since this letter we have paid £154.58 for February plus £5300 overpayment.

I'm not sure how to work out remaining balance. I'm trying to leave a very small balance to avoid early settlement charge. Hope this makes sense

Tixy

So the £6474.47 is the total amount of outstanding installments, not the captial balance owed.

As a rough calculation,
Based on the info you have given your capital balance outstanding on the Jan statement would have been around £5760.
Since the 2 payments made your capital current balance will likely now be around £338 (assuming no fee for the partial overpayment you have made).

I'd let the next payment go out and then ask them for a final figure.

ice_babe

I think the £6474 is the total amount outstanding?
We made a £400 overpayment in December and letter in Jan says

"As a result of the partial repayment the remaining total amount payable is £6474.47"
And when I add up the 42 instalments it comes to £6474.47

Would be great if there was only £300 odd left on loan :beer:

Tixy

£6474 is the total amount outstanding including interest only if you let the loan run continue to run with those repayments.

As you are paying off earlier you pay less overall, so its the outstanding capital balance that is important. Which based on those repayments and APR would have been around £5760 (give or take a few pounds).

ice_babe

Had a letter today

We now have £510 remaining on the loan
and had a rebate off £663.77 for the overpayment!!! :beer:
So i'm guessing we might as well let it run for the remaining term?
Payments are £154.58 for 3 months then £46.99 for the last month :j

If we continued to overpay £100 a month i'm guessing we wouldn't save much?