We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
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
-
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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards