IGNORE - Should I bother repaying my Nationwide loan?

edited 30 November -1 at 1:00AM in Loans
6 replies 1.2K views
CamptasticCamptastic Forumite
6 Posts
edited 30 November -1 at 1:00AM in Loans
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?? :confused:

Thanks.

Replies

  • sdooleysdooley Forumite
    918 Posts
    That looks like you're worse off by paying off early!

    Did you take out insurance with the loan? That might account for it.
  • CLAPTONCLAPTON Forumite
    41.9K Posts
    10,000 Posts Combo Breaker
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    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?
  • RafterRafter Forumite
    3.8K Posts
    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.
    Smile :), it makes people wonder what you have been up to.
  • I phoned them this morning and that's the figure they gave me (within a few pence).

    I didn't take out the insurance.
  • CLAPTONCLAPTON Forumite
    41.9K Posts
    10,000 Posts Combo Breaker
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    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.
  • 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.
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