IGNORE - Should I bother repaying my Nationwide loan?

Camptastic

PLEASE IGNORE THIS - I got my figures wrong! Sorry!!

Can someone give me some advice here as I think my head may explode. I have a personal loan from Nationwide which I want to repay early but I'm really not sure whether it's worth it but I'm sure it should be. Here's the details . . . .

Original loan - £5600

Original term - 60 months (taken out in May 2006 (39 months remaining))

Interest rate - 6.49%

Monthly repayments - £109.58

Settlement figure today - £4295

I've got £1500 in savings and I was going to do a balance transfer from a new Virgin credit card (with 14 months interest free) for the remaining amount.

Surely repaying it early from my savings and an interest free transfer should save me over 3 years of interest payments but on the settlement figure they've given me I wont be saving anything.

Please can anyone explain this to me??

Thanks.

sdooley

That looks like you're worse off by paying off early!

Did you take out insurance with the loan? That might account for it.

CLAPTON

When you say the setttlement figure , do you mean you have written to them and asked for a settlement figure if you pay the loan off now?

Rafter

That settlement figure doesn't look right.

Should be about £3750 plus any penalty interest for settling early - which shouldn't be more than £50.

As long as you can raise the funds to repay the Virgin card in 14 months time, you should be much better off - unless you can earn more than 6.5% after tax on savings - which is very unlikely.

R.

Camptastic

I phoned them this morning and that's the figure they gave me (within a few pence).

I didn't take out the insurance.

CLAPTON

then I dont understand it

you have 39 payment of 109.58 to make i.e. £4273 so paying back 4,295 makes no sense... I wonder if they simply read their screen with your current debt outstanding rather than gave you an actual settlement figure (which should be arround 3,800- 3,900 ish mark)

maybe phone again or write and make sure they realise that you want figure (in writing) that will settle the debt now.

Camptastic

Thanks for your replies. Sorry it's all my fault - I've actually got 43 repayments outstanding. Closing the loan early will actually save me £452.99. Thanks again and sorry for being such a prat. It's no wonder I got myself in the mess I was in with money lol.