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Early settlement figure????

sarah7610
sarah7610 Posts: 148 Forumite
Part of the Furniture 10 Posts Combo Breaker
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

Comments

  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Is there any early settlement fee or charges to withdraw a legal charge if it is a secured loan?
  • sarah7610
    sarah7610 Posts: 148 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    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]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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.
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