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part paying off loan
I have 2 loans with Egg, and I have £2000 which I want to use to pay off part of one of the loans. But I am not sure which would be the most cost effective.
Loan 1 ends in December
Loan 2 is only a year old and was for £8000.
I am thinking the newer one should be paid off first as it would reduce the interest over a longer period. Both interest rates are the same.
Any advice please.
Loan 1 ends in December
Loan 2 is only a year old and was for £8000.
I am thinking the newer one should be paid off first as it would reduce the interest over a longer period. Both interest rates are the same.
Any advice please.
0
Comments
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if the APRs are the same and there is no fees or charges for overpayment then it makes no difference at all which you pay off... I'm assuming that if you pay off the one that ends in decemebr you will use the freed up money to over pay on the second0
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