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Should I make large loan payment before settling?
I recently took out a large loan for a kitchen which I don't need as I'm fortunate enough to have saved the funds, I took it because it came with a large contribution towards appliances.
If I ask for a settlement figure the repayment terms include 58 days interest. Over payments are allowed without penalty so presumably I could pay off 95% of the loan before asking for a settlement?
If I ask for a settlement figure the repayment terms include 58 days interest. Over payments are allowed without penalty so presumably I could pay off 95% of the loan before asking for a settlement?
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Comments
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Usually, yes.0
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Doing it this way should save you a decent chunk of interest.0
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I would say yes0
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Yes I think so0
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Payment has been made, thanks all0
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How did this work out? Did it in fact allow you to save a lot on interest?0
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I haven't made the settlement yet but I expect that figure to only consist of 58 days interest being applied to the outstanding balance which is about £600
Original settlement would have had around £200 interest0 -
Presumably you could make a 99% overpayment and just leave a nominal amount on there (£100?) which would save you even more interest?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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