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moneysupermarket.com community... » Forums » Money & finance » Ask an expert - Money » what is the best way of borrowing money if i want to try and pay it off early

what is the best way of borrowing money if i want to try and pay it off early

Last post Thu, Feb 09 2012, 4:15 PM by n3mo. 2 replies.
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  •  Thu, Feb 09 2012, 4:15 PM

    Re: what is the best way of borrowing money if i want to try and pay it off early

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    what you do is contact your lenders and find out how much to clear the balance in full

    they will then calculate how much to clear - they will throw in any fees and extra interest

    then what you do is clear the balance less a few hundred

    eg if one loan to clear is 5k, you pay £4500 off that loan. This will reduce the amount of interest and fees they are wnating to throw in

    and then the normal monthly amount will clear the o/s balances
    • Post Points: 5

  •  Mon, Feb 06 2012, 6:52 PM

    Re: what is the best way of borrowing money if i want to try and pay it off early

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    Have a shop around at loans, as they don't all have charges for paying off early. A close relative has recently amended her loan with Santander and can now 'overpay' without penalties. I'm not sure on the finer details, but she's in for a little bonus this summer and can pay that off her loan without issue.
    • Post Points: 29

  •  Mon, Feb 06 2012, 3:20 PM

    what is the best way of borrowing money if i want to try and pay it off early

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    Hello

    Im looking at borrowing money to consildate debt but each loan is fixed monthly amount and charges if you pay early what would be the best way of borrowing to do this as really want to be able to pay extra each month?

    Many Thanks
    • Post Points: 35