Help me get this straight

noterms

All doom and gloom some of you lot - I intend to pay it off as rapidly as possible to make it akin to a bank loan which i couldn't get due to issues in past which I'm still waiting for credit companies to deal with and sort out my report.

But i'll heed your advice none the less.

paddyrg

The reason people are twitchy is that guarantor loans often fail to work out for the guarantor (which is why they're needed in the first place), so you'll have to forgive them some foreboding comments!

The best answer is always to overpay as fast as you can. The interest being calculated daily is good for you as it means you'll get the overpayment value benefit daily. Then continue with the regular payment dates and terms but throw any overpayment in along the way you can without risking your own ability to make regular payments.

If you think of the money as sunk, and that you owe £14k, then in effect any pound you overpay is earning interest at 49.9%, far better than any bank account in credit ;-)

noterms

paddyrg wrote: »

If you think of the money as sunk, and that you owe £14k, then in effect any pound you overpay is earning interest at 49.9%, far better than any bank account in credit ;-)

Could you explain that a little?

AnotherJoe

noterms wrote: »

Could you explain that a little?

What I think they mean is, imagine you didn't owe that money, and you had just opened an Amigo bank account that paid you 49.9% interest on the money you saved in it.

You'd be ramming money into that as fast as you could !!

Well, that in effect is the situation you are in, because every pound you "save" pays you back 49.5p every year. So pay off as fast as possible.