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Loan Closure or Additional Payment
I currently have an outstanding Lloyds balance of approx. £8400
Was going to pay it off but the settlement figure is approx. £8550
What happens if I make an additional payment of £8250 instead?
The balance will be reduced to £150 which will be paid of in next installment.
What am I missing here?
Edit: I think I get it, there will be another £50 months interest, then 58 days interest for closing early?
2nd Edit: I see what they have done, the settlement quote is valid for 30 days, so if I close it today I've effectively paid another 30 days interest for nothing. Very crafty.
Was going to pay it off but the settlement figure is approx. £8550
What happens if I make an additional payment of £8250 instead?
The balance will be reduced to £150 which will be paid of in next installment.
What am I missing here?
Edit: I think I get it, there will be another £50 months interest, then 58 days interest for closing early?
2nd Edit: I see what they have done, the settlement quote is valid for 30 days, so if I close it today I've effectively paid another 30 days interest for nothing. Very crafty.
0
Comments
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Nothing to lose here.
Depends on what kind of personal loan you have - some have early settlement fees others will not.
They are not trying to diddle you with the settlement quote.
If it was valid for one day it would be out of date tomorrow and of no use to you.
All lenders use the same method.0
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