Overpayment on personal loan

griffiths93

Hello guys looking for some advice I took out a personal loan of 5200 over 4 and a half years with an interest rate of 7.9 percent, this works out to about 114 pounds a month that I pay.

Bascially I'm planning to move out come september 1st but until then I have extra money that I could put towards this. I was going to overpay by about 665 pounds in that time but I will have to pay a fee of 58 days interest on the amount I overpay. This would reduce my monthly payments but not by a huge amount, would this still be worth doing? I know I'll pay the interest fee but would I make my money back in interest saved eventually?

Thanks guys

[Deleted User]

As long as you have more than two months remaining on the loan, you will save money.

cooltt

I do this always worth saving some interest.

PaulW922

Rather than settle outright, just send an overpayment - there will be no interest charge 'penalty' on that and it will reduce the amount outstanding. Then you can allow the loan to run its course. I have done it myself on two occasions.