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Loan overpayment or run its course
Brightspark87
Posts: 1,466 Forumite
Hi guys
I am near to the end of my debt paying days (see my diary) but I have been struggling with something.
I have a loan, which is £218.59 a month. Last payment due 4th July 2016. I have £1,530.13 left.
I have been offered a money transfer to 0% for 18 months ( I would have paid it off way before then) with a 2.9% fee.
If I pay off the loan with a lump sum of £1,200 the monthly repayments would stop after 2nd February 2016 or be reduced until 4th July to £42.66. this includes a £35.44 interest charge. Total payable: £1,637.18
Early settlement quote, valid for another 21 days, is £1,485.17.
I do have cash and other savings but I am worried about not having that in the bank (I want the security of knowing we could move house tomorrow and have the deposit months rent etc in one go) so I would use the card to borrow all but £200 of the lump sums.
What are your thoughts? Please be nice :beer:
I am near to the end of my debt paying days (see my diary) but I have been struggling with something.
I have a loan, which is £218.59 a month. Last payment due 4th July 2016. I have £1,530.13 left.
I have been offered a money transfer to 0% for 18 months ( I would have paid it off way before then) with a 2.9% fee.
If I pay off the loan with a lump sum of £1,200 the monthly repayments would stop after 2nd February 2016 or be reduced until 4th July to £42.66. this includes a £35.44 interest charge. Total payable: £1,637.18
Early settlement quote, valid for another 21 days, is £1,485.17.
I do have cash and other savings but I am worried about not having that in the bank (I want the security of knowing we could move house tomorrow and have the deposit months rent etc in one go) so I would use the card to borrow all but £200 of the lump sums.
What are your thoughts? Please be nice :beer:
Paid off all Catalogues 10.10.2014
0
Comments
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For such a small saving of £55 and then worrying you don't have access to "cash", I think it's probably best to just let it run.0
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Yes, I have to say I agree with lee111s on this. It sounds to me like the peace of mind of having the cash sitting there is worth more to you than the quite small saving, at this stage.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
thanks guys I will take your advice I would like to be debt free a little earlier that is all... but equally who knows what could happen when you rent so like to keep the cash there.
Paid off all Catalogues 10.10.20140
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