Is interested accrued daily?

Bublin1

I have no clue about interest and how it's calculated, so could someone please explain it in simple terms.

I have an NRAM loan (now Kent Reliance). The outstanding amount is £5014. I'm paying 6.5% interest.

I make overpayments once a month.

Is this interest calculated daily on the outstanding balance?

Is it better to pay off say, once a week if it IS calculated daily?

Tixy

Yes it is calculated daily. Yes it is best to make any overpayments as soon as you can afford to (although check if they are charging any admin fee for overpayments which could negate the interest saved by paying weekly).

Bublin1

Thank you for replying so quickly.
No, I'm not charged any fees.

So - I'm aiming to pay say, £200 a month ontop of my minimum of £180. I am better off spliting that 200 up and paying £50 a week? Great. That certainly would be more satisfying because I hate waiting a whole month.

Another question....deleted.., I've read other threads.

CLAPTON

Bublin1 wrote: »

Thank you for replying so quickly.
No, I'm not charged any fees.

So - I'm aiming to pay say, £200 a month ontop of my minimum of £180. I am better off spliting that 200 up and paying £50 a week? Great. That certainly would be more satisfying because I hate waiting a whole month.

Another question....deleted.., I've read other threads.

a bit unclear

make the payments asap

ricky_v

Bublin1 wrote: »

So - I'm aiming to pay say, £200 a month ontop of my minimum of £180. I am better off spliting that 200 up and paying £50 a week? Great. That certainly would be more satisfying because I hate waiting a

If allowed, I would make the overpayment every day. 200 x 12 = £2400 overpayment annually

£2400/365 days = £6.58 a day (rounded up).

Clive_Woody

If you have the £200 at the beginning of the month then pay it off then.

If you get paid weekly then pay off the £50 per week.

Basically the sooner you pay any money off the loan then the sooner you stop being charge interest on that amount.