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

Loan Settlement Fee

borich
borich Posts: 79 Forumite
edited 20 December 2014 at 12:34PM in Loans
I'm looking to pay off my loan today in full and online banking has provided me with the current breakdown.

Current loan: £16,216.12

Interest accrued: £119.67

Early settlement fee: £211.18

Total loan settlement: £16,546.97

If I was to pay off 16,200.12 and leave £16 on the account would the final direct debit but just for £16 and I would avoid early settlement fee?

If that doesn't work i'll just pay off the entire loan.

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    You will owe the interest accrued figure whatever. What you may/should be able to save on is the early settlement fee.

    If you do plan to leave a small balance, then depending on how soon the next DD is then it may be that they would end up taking the full DD but that you'd then be entitled to a refund.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • borich
    borich Posts: 79 Forumite
    Ideal, ill do that. the DD is due on 5th January 2014. Saves me £211 :)
  • Daybreak15
    Daybreak15 Posts: 7 Forumite
    Hi.

    I'm in a similar situation, did u get charged interest? Did u get a refund.


    Thanks
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.5K Banking & Borrowing
  • 254.1K Reduce Debt & Boost Income
  • 455K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 602.9K Mortgages, Homes & Bills
  • 178K Life & Family
  • 260.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture