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Overpaying a Loan: A Good Idea or Not?

20aday · 2015-04-29 12:33:40

Hello fellow MSEs, I've got a NatWest loan which is scheduled to complete in June 2017. The APR is 19% and my monthly repayments are £129.78. I've also been making additional overpayments at £20 a month since March of this year (the loan should've completed in October 2017.) I've been doing my sums and including the…

Comments

jamesd Posts: 26,103 Forumite

4 May 2015 at 11:08AM

Your plan to use the card for spending and put the cash towards the loan makes sense. It makes even more sense given that the loan rate is 19% and card rate 16.9%, since it would be worth doing even if you were paying card interest, let alone now when you aren't.

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