Early repayment with Time Retail Finance loan

nicki_2

I currently have a "loan" with Time Retail Finance (through Comet) with approximately 6 or 7 repayments left to make. According to my calculations I owe about £60 and was considering paying it off in one lump sum. Currently I'm paying £10.08 a month and have been since 7 May 2002.

Note : At the time we had little choice but to take out the loan as we were on benefits, had no credit card, no savings, were trying to pay back a £1500 overdraft of partners and had a 1 year old who was still on formula milk when our fridge went bang and stopped working. I'm now regreting going for the minimum monthly payment ::)

Anyway, I was wondering whether anyone had done this and how to go about it? All it says in the leaflet that came with the Time Card I was automatically given when taking out the loan is this :
You may close your Account at any time by repaying all amounts you owe on your account and returning your Time Card to us

I assume then that I can just write them a letter requesting that the account be closed and a final statement with girobank thing on be sent to me for the outstanding balance?

Debt_Free_Chick

I assume then that I can just write them a letter requesting that the account be closed and a final statement with girobank thing on be sent to me for the outstanding balance?

It would be better if you called them and asked them to confirm the "settlement figure". This is the amount they require to satisfy the "all amounts owed to us".

It may include a penalty for early payment and the settlement figure will tell you what it is. Ask them to specify how they've arrived at the figure.

If there's a penalty, you can consider whether it's worth paying it - simply to get rid of the debt - or sticking with the repayments.

Justin_Credit

Try giving them a ring, I did this today to attempt to settle an outstanding debt I have with them.

A very helpful person at the other end gave me a settlement figure there and then, which remains valid for 2 weeks. This would have been a considerable saving had I been able to carry on and settled the debt.

The reason I couldn't settle up there and then was the fact that I wanted to settle by credit card which I was told I couldn't do with them, I would have to do it through the CC provider. They could have accepted a debit card over the phone though but i didn't have the funds to allow me to do that.

This is definitely a loan I wish I hadn't taken out in the first place though with an APR of 26.9%, but I did it for several reasons which suited at the time.

Regards
Justin Credit

Lopo

If your paying off the £10.08 a month, it could well be that you simply have a store card, hence you can pay it off anytime. The store card is just like a credit card.

If on the other hand, you have a payment plan of some kind where it is fixed over a number of years, then its likely to have a penalty - likely to be say 2 months for early repayment.

If thats the case, consider paying say £55 off now, and then the remaining amount will accrue the interest only, and you let it finish on its agreed date....ie with no penalty.... (useful tip for similar future situations!!)

BUT...since its such a small amount remaining, may well be best to let it run its course and continue with the minimum payments.

Going on your description, although you said loan, it seems you have been paying back just a minimum on a store card by my estimations....and could well have paid this off at any time without penalty. The billing/statements you receive will indicate exactly what type of debt it is that you have.

Give TR a call...they will help you out with the right info.