Moneybarn overpayment advice

Logan1941

Hi all new to this forum looking to it for some advice.
I took a money barn loan out for £8000 at 30 odd % Apr.

Long story my payments of £300 per month I can easily afford and I want to over pay at least £500-£1000 over payment a month. I want to make my contractual payment and then my £1000 extra a month ( sorry hard for me to explain this here)

My question is at the moment the outstanding loan is like £17000 but if I over pay £1000 plus my contractual monthly payment will this bring the interest down? This is a new loan, it was a last resort but I felt I could pay it off quick and the girl at Zuto advised I can make £8000 overpayment a year but will this bring the interest down. Sorry if I am not explaining this clear.

Thanks in advance for help and advise.

[Deleted User]

It would mean that you pay less interest in the long term. However, it won't change the rate, and I would expect your payments to stay the same, but for the term to finish earlier.

Logan1941

Zx81 thanks for your response. That is exactly what I was looking to hear. If I made overpayments I still expect to pay my £300 a month. I just would rather pay maybe £1500 interest compared to the £9000 if i had to pay full term, was just making sure I was correct in doing this before I start giving them £1000 over payment and the monthly £300.

foxy-stoat

Make the overpayments and keep records - double check the annual statement when you receive it, just to make sure they have been credited a few days after you pay them.

poppasmurf_bewdley

Just one question.

If you can afford £1000 per month overpayment on this £8k loan, plus the £300 monthly installment, why didn't you just save up for six months instead of taking out a loan at 30 odd % APR?

tidds

poppasmurf_bewdley wrote: »

Just one question.

If you can afford £1000 per month overpayment on this £8k loan, plus the £300 monthly installment, why didn't you just save up for six months instead of taking out a loan at 30 odd % APR?

Sometimes peoples circumstances change and maybe then this wasn't possible, but now it is. I guess..

poppasmurf_bewdley

tidds wrote: »

Sometimes peoples circumstances change and maybe then this wasn't possible, but now it is. I guess..

Yes, I can understand that. It just seems strange that someone with the income to make these payments should choose one of the most overpriced loan companies. If we know the background, it helps the OP to get better answers.