Avoid early repayment charges Barclayloan

maggie84

Hi

Just looking for some advice please. We have a barclay loan that we are going to pay off early as the interest is high however there is a substantial early repayment charge. I've read that if we pay all but one direct debit and let that come out on the payment date we can avoid fees and the loan will naturally close.
Is this true? Or are there any other ways around this

Thanks in advance

Caz3121

you would need to read the paperwork you have regarding overpayments

Bermonia

Would agree with Caz3121, either checks t&cs or contact them - allow i’d Be surprised if it were the case as business would lose out on money it feels is owed.

Dobbibill

agreed with other posters check your paperwork.

You are saying you are going to make an overpayment so check there are no limits/fees for that and also you mention an early settlement (this is normally 58 days interest on the balance but there may be other fees so this is why you need to check the paperwork).
Theoretically, you could (if there are no additional charges) make an overpayment leaving just over a few months balance and then request an early settlement figure meaning the interest is calculated on the smaller balance rather than the largest one.

maggie84

Thank you, I will look into seeing if there are fees for an overpayment and do that