pete_555

I have a loan for £4000 which I took out on 27 Feb 2003, my final payment date is 31 Jan 2007. I currently have a balance of £ 3,312.49. My current payment is £101.41, if I up this payment to £140.00 how much quicker will the loan be paid?

OllyK

Best bet is to contact the loan supplier. Their terms and conditions may not allow you to increase your payments and some will charge you for paying off early. Without knowing all the terms and conditions it is hard to say

corradoboy

Switch to a Cahoot fixed at 5.9% and you'll pay off £3300 in 24 months at £160pcm.

+Doc+

Also if you have a crap APR you get get another shorter loan out to pay the existing loan.
Doc

Reffro

Sorry Corrado Boy but £3300 at 5.9% APR over 24 months is about £146pm, so dunno where the extra £14pm is going unless its loan protection?

Just having a look at your current payments pete, you're paying about 10%APR at a guess. If you look to borrow £3300 off another loan company the amount may be too small to qulaify for a much lower APR, but have a look round to see. The amount you mentioned still owing, is that a proper redemption value, if not you may have slightly less to pay back if you redeem the current loan.

[Edited by Reffro - 1/15/2004 4:58:32 PM]

Diesel

Is this kind of thing worth doing on a fixed interest fixed term loan? By that I mean the amount of interest you pay in the early part outweighs the capital, but by the end you are mostly paying off capital only. Hope that is not too off topic as I have a loan with 1 yr left to run of a 4 yr term and was considering paying it off as the APR is 12% but can get that Cahoot one for 6%... It's a £10500 loan over 4 yrs @ £259pcm no payment prot and I'm feeling a bit SKINT these days

D

(edit - it wasnt £10500k - that's rather a lot)

[Edited by Diesel - 1/15/2004 7:41:44 PM]

corradoboy

Sorry, I left the payment protection on. Doh! Yep, it should be about £146pcm over 2 years. Payed off by Jan 2006.