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    • nzxt
    • By nzxt 20th Mar 17, 11:14 PM
    • 12Posts
    • 4Thanks
    Settlement figure
    • #1
    • 20th Mar 17, 11:14 PM
    Settlement figure 20th Mar 17 at 11:14 PM
    Hi, I took a loan out for 4946.40 @ 4.1% interest / 7.9% APR over 48 months. tTe current outstanding balance is 2050.54. What is the calculation to figure out the interest savings if a final settlement was asked for?
Page 1
    • Nebulous2
    • By Nebulous2 21st Mar 17, 12:08 AM
    • 1,823 Posts
    • 1,102 Thanks
    • #2
    • 21st Mar 17, 12:08 AM
    • #2
    • 21st Mar 17, 12:08 AM
    Multiply the monthly payment by the number of payments left. Then deduct the settlement figure. Whatever is left is the saving.

    Settlement figures vary. Lenders are allowed to charge a settlement fee of two months interest but some of them don't. Your terms and conditions will tell you if yours does.
    • C.M.
    • By C.M. 21st Mar 17, 7:49 AM
    • 57 Posts
    • 105 Thanks
    • #3
    • 21st Mar 17, 7:49 AM
    • #3
    • 21st Mar 17, 7:49 AM
    From my experience with tesco they do charge interest for repaying early. However, if you were to make a larger over payment (and ask for it to reduce the term of the loan) and then wait a few days for it to appear on your account, then the additional interest will only be charged on the remaining amount - saving you a bit extra again
    • Money Rollercoaster
    • By Money Rollercoaster 21st Mar 17, 10:22 AM
    • 245 Posts
    • 605 Thanks
    Money Rollercoaster
    • #4
    • 21st Mar 17, 10:22 AM
    • #4
    • 21st Mar 17, 10:22 AM
    It's easier just to ring Tesco for the settlement figure ...

    A couple of things to note:

    1. they'll likely charge you 58 days interest as part of your settlement
    2. the settlement figures can be a bit odd, because they might not include your most recent payment (due to the time they allocate for clearing)
    Living Life @ 174 BPM >> CC Balance (0%) -3,565.99 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -19,803.74 - Target DFD Nov 2020
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