Early settlement figure????

sarah7610

Hi, today I phoned my last remaining creditor (Elderbridge), to ask for an early settlement figure.
On my last statement dated 9th April 2018 to 8th July 2018, the Total Outstanding Balance is £1,513.06 yet the figure they have given me for early settlement is £1,523.92.

Forgive my ignorance but isn't an early settlement supposed to be less than the outstanding balance otherwise what's the point?

Thanks

jonesMUFCforever

Is there any early settlement fee or charges to withdraw a legal charge if it is a secured loan?

sarah7610

When I took out the loan it was with GE Money and on the original agreement it says i am to pay the outstanding balance plus a fee equal to one months interest.

[Deleted User]

That looks about right then - outstanding balance plus a month's interest.

The settlement figure could never be less than the outstanding balance, or they'd be giving away cash. The point of settling early is to save on future interest.