Loan Settlement Figure, How to work it out.

cheets64

cheets64

cheets64

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Do I need to take off there yearly interest owing on the loan.

I got a £3k loan it came to £3600 with interest.

I have paid off 10 payments of £99, now for me to work it out roughly, do I take off the 2 years interest left owing £400 (£200 a year for interest)

So £3600 - £901 = £2610

£2610 - £400 = £2214 Settlement Figure
 
Admiral Huddy said:
it depends on the interest rate and the interests basis they are giving.

If you are wanting a settlement figure, they will tell you over the phone.
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I rang them they said they cant do it on the phone as its a new account :confused: and they are sending a letter out and it will take 10 days.
 
Depends on your loan agreement. Some loans like Northan Rock have no penalty early repayment policys. Others may well charge you for extra, as well as interest.
 
I always ask if I can pay off the loan before hand with no extra intreast. Would suck to get a loan and pay it off early only to have to pay off the extra intreast as well. Makes it not worth paying off the loan in the first place.

Jim
 
If you look at the loan paperwork it should give you some examples of early settlement. Some places "front-load" the interest so you'll be paying more early on and then less interest and more capital near the end. Each place will do it their own way so there's not really an acurate answer anyone can give.
 
JimJones said:
I always ask if I can pay off the loan before hand with no extra intreast. Would suck to get a loan and pay it off early only to have to pay off the extra intreast as well. Makes it not worth paying off the loan in the first place.
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Excactly, the only reason to pay off early is to avoid interest.
 
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