Pay off TSB loan in lump sum with no charge?

Confused_n_stressed

Hi


I have a tsb loan of £948 which I want to pay off as an extra payment without incurring the two month interest charge. Does anyone know how to go about this? I have seen on here about paying off a certain amount less a tenner or something but my direct debit of £70 is due tomorrow so if I leave that plus an extra tenner would I be ok to then settle once payment has gone through?

lee111s

If your DD payment is due to come out tomorrow (it won't as tomorrow is a Saturday so it'll come out Monday) then call up today and make an over payment of the outstanding balance minus your regular monthly payment - in this case £878. That way, when the monthly payment is taken, the balance on the loan will be reduced to zero naturally by means of the direct debit which then won't trigger the interest penalty.

Confused_n_stressed

lee111s wrote: »

If your DD payment is due to come out tomorrow (it won't as tomorrow is a Saturday so it'll come out Monday) then call up today and make an over payment of the outstanding balance minus your regular monthly payment - in this case £878. That way, when the monthly payment is taken, the balance on the loan will be reduced to zero naturally by means of the direct debit which then won't trigger the interest penalty.

Won't the payment not register until after the dd is taken out tho? Or won't that matter?

Confused_n_stressed

I planned to do the overpayment online?

thebritishbloke

Contact TSB about it. Two months interest on it will probably be a mediocre amount.

NYGiants

I did this recently and they added the interest a day before the last payment was taken out; I overpaid a large sum so the interest was negligible.