Overpayments on loan

johnboy13

Hello,
Got a loan out from a high interest provider in Jan 21 for £5,000 for 3 yrs. Obviously they add the interest on at the beginning of the loan so I currently owe £6,087 and I have a settlement figure of £4893.
I could probably pay it off in 5 months because there is a lot overtime at the moment and I could save £900 a month.The information am asking for is this.
Would I be best saving  the £900 each month then after 5 months get settlement figure and pay it off or just over pay £900 each month on the loan? Much appreciated.

DrEskimo

Loans are not front loaded, it's just how it's displayed (which I agree creates confusion).

The interest is calculated daily on the remaining capital, so paying it down as quick as possible will save you the most.

Overpay as soon as you can with as much as you can.