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How should i pay off my loan
Options
Hi I was wondering the best way to pay off a personal loan I have taken out. I currently pay an amount every month and have around £5,000 left to pay. The loan has a early repayment fee.
The options I have are:
- keep paying off until end as I am.
- Pay of double my payments each month and pay off quicker but incur an early repayment fee
- Try to get a balance transfer for 0% but again pay an early repayment fee.
My only other thought is do banks allow you to pay off more than you should, reducing the balance and interest charged however not pay the full amount of until the end of the agreement.
Any help would be grateful.
Thanks
The options I have are:
- keep paying off until end as I am.
- Pay of double my payments each month and pay off quicker but incur an early repayment fee
- Try to get a balance transfer for 0% but again pay an early repayment fee.
My only other thought is do banks allow you to pay off more than you should, reducing the balance and interest charged however not pay the full amount of until the end of the agreement.
Any help would be grateful.
Thanks
0
Comments
-
What is the early repayment fee - when does it kick in? How much is it?
Generally, the next advice is to overpay.
It's unusual that the bank will charge a repayment fee each month you overpay. You'd normally pay 2 months interest on the final balance cleared early.
You can't balance transfer a loan. But you could look at a money transfer card.0 -
Phone them up, ask them for a settlement amount. Get a calculator out, calculate how much you would have to pay if you continued the agreement as is. See what the difference is, decide whether it is worth it or not.
What is the interest rate?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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