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Paying off Loan - whats the best way.
partyqueen
Posts: 20 Forumite
in Loans
We have recently taken out a car loan of £7500 from Sainsburys 4.6% we have come in to some money and now want to clear the loan, whats the best way. Get a settlement figure and pay all off or over pay each month so its cleared? Will we pay the same amount of interest either way?
Hope this isnt a stupid question!?
thanks
Hope this isnt a stupid question!?
thanks
0
Comments
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In general you'll save interest by paying off early, with more savings for earlier repayment , so ask for an early settlement charge, and compare it what you'd pay if you kept the deal as is.
The one possible issue is early redemption charges, so ask about those.0 -
what does your T&Cs say about early settlement and overpayments
it will be cheaper (less interest ) to pay early via an early settlement amount
although sometimes it is cheaper to make a large over payment and let the DD clear the loan0 -
AIUI as it 's below 8k there are limits on the amount they can charge for early payment.0
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