We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Overpaying on loans
Hi, i have 2 identical loans over the same term and at the same rate. One is for £80k and the other is for £30k.
They were taken out at the same time.
Is there any benefit in overpaying on a particular one or is there no advantage gained, can the overpayment be split equally?
They were taken out at the same time.
Is there any benefit in overpaying on a particular one or is there no advantage gained, can the overpayment be split equally?
0
Comments
-
It'll make no difference (assuming any early repayment fees are the same).1
-
No early repayment fees on both0
-
Agreed - if the APR is the same and there are no penalties for overpayment, then it makes no difference from a purely financial point of view.There is an argument to say you might want to - in these circumstances - overpay the smaller loan. Purely because there is a psychological "feel-good" factor when you finally clear a debt completely. But in terms of cold hard cash, it makes no difference at all.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards