We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Loan overpayments - help I'm numerically challenged!

Options
monicamj
monicamj Posts: 121 Forumite
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.:confused:

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 :)
#178 Pay as as much as you can in 2011
£2305.80/£7489.27
#114 Crazy clothes challenge £60/£60
#1369 Sealed pot challenge 4
£9.72
#139 Virtual sealed pot challenge
£15.50

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.