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Loan overpayments - help I'm numerically challenged!
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I am new to posting so please advise me if this is on another thread!
I have a £3000 loan with Natwest that I took out 6 months ago for 3 years. I'm not sure how much the interest rate is (I know terrible) but the total payable was £3604.35 and I am paying 101.08 per month.
Natwest have told me that I can make overpayments but that I would be charged two months interest as a fee.
The problem is due to an inability to do maths I have no idea how much I should overpay by and I don't know how much two months interest is as it changes every month.
Does anyone have any kind of calculator; or are they able to give me a figure? By my reasoning if I can't afford to overpay by enough to cover the fee I would be better off putting the money in a high interest account until I can afford to pay the balance?
Can anyone help!?!
I have a £3000 loan with Natwest that I took out 6 months ago for 3 years. I'm not sure how much the interest rate is (I know terrible) but the total payable was £3604.35 and I am paying 101.08 per month.
Natwest have told me that I can make overpayments but that I would be charged two months interest as a fee.
The problem is due to an inability to do maths I have no idea how much I should overpay by and I don't know how much two months interest is as it changes every month.
Does anyone have any kind of calculator; or are they able to give me a figure? By my reasoning if I can't afford to overpay by enough to cover the fee I would be better off putting the money in a high interest account until I can afford to pay the balance?
Can anyone help!?!
Debt free by Dec 2011 
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#178 Pay as as much as you can in 2011 £2305.80/£7489.27
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#1369 Sealed pot challenge 4 £9.72
#139 Virtual sealed pot challenge £15.50
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Comments
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Firstly I'ld check with your T&Cs exactly what they say about overpayments. Sadly you can't rely on the call centre staff getting it correct.
You're probably paying about 15% on the loan and after 6 months the interest will be about £30 per month. You would need to pay at least £250 before you would save over all. So unless you have a substantial sum available its probably best to save the money in a high interest savings account until you can settle the debt in full or have simply paid it off.0
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