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Paying off Barclays loan
Comments
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Depending on how long the loan has to run, you'll save yourself some interest paying it off early.I came into this world with nothing and I've got most of it left.0
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I think the OP may be a little confused regarding the interest rebate, which is understandable.
With most personal loans, the amount showing as outstanding includes all the interest. But if you pay off early, you'll get some of the interest you would have paid refunded.
To find out what you'd need to pay to settle the loan in full, just phone your lender and ask for a settlement figure. Valid for 30 days usually, this will tell you exactly how much you need to pay.0 -
+1 for calling the lender to discover the settlement figure.
A while ago I had a Tesco loan which showed as having 22k or so left to go, the settlement figure was more like 19k since the 22k included interest over the remaining term.0 -
My barclayloan does not show the interest in the running balance. In fact, the settlement figure is higher than the amount shown, due to a months interest to be added.
If I add up the payments remaining, i.e. 50 months@£300, that's £15000 but the running balance might be £13500. So...I would save about £1500 by settling early.I came into this world with nothing and I've got most of it left.0 -
Some lenders do it differently. My current Zopa loan shows the entire interest assuming the loan runs its entire course, although I'd pay a lot less if I settled early. My previous CB loan didn't do this, however - it just showed the outstanding balance.Shakin_Steve wrote: »My barclayloan does not show the interest in the running balance. In fact, the settlement figure is higher than the amount shown, due to a months interest to be added.
If I add up the payments remaining, i.e. 50 months@£300, that's £15000 but the running balance might be £13500. So...I would save about £1500 by settling early."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Daniellexxx23 wrote: »I've been making the payments but want to pay the loan off before I apply for a mortgage. I thought I only had a certain amount left so saved up that, then found out I owed more.
Why not make a lump sum payment now with what you have saved up and continue to make the monthly payments until the rest is paid.
They only way the lender may take a lower amount to settle is when you have defaulted and stopped paying.
Nice try though.0
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