Loan overpayments - help I'm numerically challenged!

monicamj

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!?!

CLAPTON

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.