Pounds2Pocket - Question

Vapona42

Hey peoples, I need some mathematical help here if possible.

Background
I borrowed £950 with the intention of working overtime and a tax rebate to pay off a chunk of the principal. I understand that I must make the monthly minimum payment before I can pay any off the principal but it appears the live chat is not all that helpful in giving me some details due to the way their system works.

I've already made one payment (May) and my next is due tomorrow.

Query
I wanted some figures initially to see how much the monthly repayment would change to if I paid off either £200 or £300 this month (tomorrow) ontop of my current payment of £137.46 as I must make the monthly payment first, the additional goes towards the principal. However paying extra only reduces the term apparently, so I wanted to know how many months paying an additional 200 or 300 would reduce the loan term by.

As the support couldnt give me any details I'm left unsure how it would work out. Does anyone have any experience with this?

This is my understanding of it (please see payment schedule below for reference):

I've paid off £46 from the principal already. As of tomorrow I would have paid back £86.

£137 x 13 = £1781 - with no early repayments will be the total I would pay without overpayments on the principal.

I'm roughly paying back twice the loan amount, looks to be about 87% as the difference between 950 and 1781 (137 x 13) is 87%. My principal loan amount is currently 864 after last months and this months payment. So with some crude and ineffieciant maths I've come up with the following:
864 x 0.87 = 751
864 + 751 = 1615

If I pay off an additional 200 this month my principal changes to 664.
664 x 0.87 = 577
664 + 577 = 1241.68

Giving me a saving over the rest of the term of about £400, which is almost already enough to pay the rest of the loan off. Hence why I want to put more into the principal. Granted I wouldnt have this money until the end of the term but I want to keep chipping away at it.

If as they say my monthly payment doesn't change it should simply be:
1241 / 137 = 9 (ish) months?

So assuming its 9 months with the last payment being slightly more than the previous, or the first being more than the rest.

Am I doing this right? Some advice would be appreciated.


Payment Schedule
Payment Date | Interest Due | Principal Due | Total Due
20 May, 2015 | £91.09 | £46.37 | £137.46
17 Jun, 2015 | £97.04 | £40.42 | £137.46
15 Jul, 2015 | £92.70 | £44.76 | £137.46
12 Aug, 2015 | £87.89 | £49.57 | £137.46
09 Sep, 2015 | £82.57 | £54.89 | £137.46
07 Oct, 2015 | £76.68 | £60.78 | £137.46
04 Nov, 2015 | £70.15 | £67.31 | £137.46
02 Dec, 2015 | £62.92 | £74.54 | £137.46
30 Dec, 2015 | £54.91 | £82.55 | £137.46
27 Jan, 2016 | £46.05 | £91.41 | £137.46
24 Feb, 2016 | £36.23 | £101.23 | £137.46
23 Mar, 2016 | £25.36 | £112.10 | £137.46
20 APR, 2016 | £13.32 | £124.07 | £137.39

Tixy

If you pay off £200 extra tomorrow, and future repayments are all still £137.46 then you will save about £250 in interest over the course of the loan.

You'd make the payments as normal through to December and January's payment would be a balancing figure (around £95).

If the overpayment was £300 the the interest saving overall would be around £360 - (december payment around £50, no payment from January).

That assumes there is no fee for any partial overpayments.