Egg Loan Overpayments

Jeppo

I owe about £16K on an Egg Loan, but because business is improving I'm thinking now would be a good time to throw some more money at this debt.

My question is would it be worth me doing a few one off overpayments into my Egg Loan? Or would I get stung with this rule of 78 stuff?

Thanks,

Mark

Tr@cker

There's no rule 78 with an Egg loan so i'd make the overpayments while the going's good business wise.

chowster

Sorry for my ignorance ...Rule 78?

Tr@cker

Rule 78 is a method of calculating the rebate of interest on the total amount repayable on a loan of fixed repayments when you settle early. It's not favourable.
But for anyone who has no intentions of paying up early, there's no difference in the amount repayable on a loan with or a loan without (both loans at the same APR of course) I'd have thought anyone with variable income would avoid rule 78 loans if possible.

Jeppo

Thanks tracker - that kinda clears things up for me as I wasn't too sure! ;D

Robert_Sterling_3

The Rule of 78 applies to all regulated loans but the rule of 78 provides the lender with a MINIMUM amount of interest that can be rebated but invites the lender to be more generous.  Hence  the rule of 78 both applies and does not apply.  ;D

Robert_Sterling_3

My question is would it be worth me doing a few one off overpayments into my Egg Loan? Or would I get stung with this rule of 78 stuff?

Ask Egg.

Tr@cker

Mr Shilling. It clearly states in Egg small print that you can pay as little (not less than the minimum) or as much as you like in repayments and pay the loan off in this way as quick as you like. So no, rule 78 does NOT apply and your wrong, rule 78 does not apply to all loans.

Tr@cker

Cahoot, Intelligent Finance and Goldfish are also listed as offering non-rule 78 loans. Source, MSN money by Nick Cuccuti.

King_David_2

Mr Shilling is on this site to see how many posts it takes to get 5 stars.

Elsewhere on this board someone asked about Yes Loans (I think from memory). It was a simple question as to whether anyone had any comments about them.

Mr Shilling's reply was this:

Have I heard about Yes? No.

As I post this he has posted 1666 times. I would suggest that at least 1600 of them are of no use whatsoever.

I apologise again to the person seeking advice that this Mr Shilling might have tainted your view of this site. He is what I call a "wanna-be poster".

He gets a kick out of the stars and seeing the post count go up. Personally, I get a kick (not sexual ;D ) out of trying to help others.

Perhaps Mr Shilling you need some lessons in how to help others. In the mean time please refrain from posts like the one above.

Jeppo

No problems - I've asked questions on far less polite forums, so i'm used to the windbags!

As for this forum, i'm impressed at how many people make sensible comments & at least Shilling got me reading the small print.