Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • laraapril
    • By laraapril 30th Nov 17, 2:00 PM
    • 3Posts
    • 0Thanks
    laraapril
    Pre-paying loan payments for a year..
    • #1
    • 30th Nov 17, 2:00 PM
    Pre-paying loan payments for a year.. 30th Nov 17 at 2:00 PM
    Hello

    I have a bank loan for a term of 6 years.

    I'm about to come into some money (not enough to pay it off, unfortunately!) - enough to cover one year's payments.

    I was wondering if if I could pre-pay the next 12 months loan payments, suspend loan Direct Debit payments for the next 12 months too, and then re-commence the normal arrangement by DD thereafter.

    I've heard of people paying of loans early, but this is rather different, nor is it like a payment holiday, because there wouldn't be any gap in payments (in fact, the bank would get 1 year of them early!). I wasn't sure if anyone else had ever come across this.
Page 1
    • spadoosh
    • By spadoosh 30th Nov 17, 2:01 PM
    • 5,190 Posts
    • 6,994 Thanks
    spadoosh
    • #2
    • 30th Nov 17, 2:01 PM
    • #2
    • 30th Nov 17, 2:01 PM
    Its an awkward way of going about it and youd need to get agreement from the lender.

    Why not just keep the money in the bank and let the DD proceed as normal?
    Don't be angry!
    • laraapril
    • By laraapril 30th Nov 17, 2:02 PM
    • 3 Posts
    • 0 Thanks
    laraapril
    • #3
    • 30th Nov 17, 2:02 PM
    • #3
    • 30th Nov 17, 2:02 PM
    Well, it may affect benefits I am receiving.
    • zx81
    • By zx81 30th Nov 17, 2:05 PM
    • 17,227 Posts
    • 18,308 Thanks
    zx81
    • #4
    • 30th Nov 17, 2:05 PM
    • #4
    • 30th Nov 17, 2:05 PM
    No, the lender won't allow it.
    • laraapril
    • By laraapril 30th Nov 17, 2:06 PM
    • 3 Posts
    • 0 Thanks
    laraapril
    • #5
    • 30th Nov 17, 2:06 PM
    • #5
    • 30th Nov 17, 2:06 PM
    OK, thought it was probably a long shot, but heh!

    Nothing ventured
    • spadoosh
    • By spadoosh 30th Nov 17, 2:07 PM
    • 5,190 Posts
    • 6,994 Thanks
    spadoosh
    • #6
    • 30th Nov 17, 2:07 PM
    • #6
    • 30th Nov 17, 2:07 PM
    Well, it may affect benefits I am receiving.
    Originally posted by laraapril
    So you want to fiddle your finances so you can claim additional benefits of which you wouldnt be recieving otherwise?

    And you want me as a tax payer to tell you how to do that?

    Not very bright are you?
    Don't be angry!
    • copperclock
    • By copperclock 1st Dec 17, 11:47 AM
    • 272 Posts
    • 327 Thanks
    copperclock
    • #7
    • 1st Dec 17, 11:47 AM
    • #7
    • 1st Dec 17, 11:47 AM
    You could take out a smaller loan, and use that plus your lump of cash to pay off the original. Then you would be left with a smaller loan and no (less) savings.
    • marliepanda
    • By marliepanda 1st Dec 17, 1:20 PM
    • 5,877 Posts
    • 12,458 Thanks
    marliepanda
    • #8
    • 1st Dec 17, 1:20 PM
    • #8
    • 1st Dec 17, 1:20 PM
    You could take out a smaller loan, and use that plus your lump of cash to pay off the original. Then you would be left with a smaller loan and no (less) savings.
    Originally posted by copperclock
    Paying off debts like this could also affect the OP's benefits.
    • Sncjw
    • By Sncjw 2nd Dec 17, 9:21 AM
    • 1,826 Posts
    • 1,087 Thanks
    Sncjw
    • #9
    • 2nd Dec 17, 9:21 AM
    • #9
    • 2nd Dec 17, 9:21 AM
    How have you got a loan on benefits thought it!!!8217;s difficult to do so
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,213Posts Today

7,741Users online

Martin's Twitter
  • Nearly at the Cheshire Show. Doing an @itvMLshow there today and tomorrow. Do say hi if you're there or ask a question.

  • Good morning. I'm on the train to go to the Cheshire Show today to film for an @itvmlshow Roadshow. Looking forwa? https://t.co/T0uKOKyj4I

  • Early days, but so far a huge majority - 19 in 20 people - support legalising cannabis for medical use. Whereas t? https://t.co/a3gJipQITc

  • Follow Martin