# Clearing Loan



## dree812004 (5 Nov 2012)

Hi 
I have 10K plus interest left in a loan paying 320.00 per month 47 installments left, If I was able to pay 900.00 every month for a year and kept putting this off the loan to clear it would they still come after me for the out installments of interest as the loan would be repayed?


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## 44brendan (5 Nov 2012)

If it's a standard bank loan you should be entitled to pay accelerated repayments as you suggest. Number of instalments at 900 required will be dependent on the attaching interest rate. You do need to cover the interest, but the amount of interest will reduce significantly if you increase your instalments as proposed.


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## vandriver (5 Nov 2012)

I've just worked out that you are paying about 45% Apr on this loan!
Is it fixed rate or variable?Who is the lender?What do the terms and conditions say about overpayment or early settlement?


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## vandriver (5 Nov 2012)

You've posted this in credit union issues.Surely this is not a credit union loan?


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## dree812004 (5 Nov 2012)

Yes it is a credit union loan I am not great at calculations hence how I am in this pickle but from my last slip when I was in there it said something like 190 off the loan 130 interest per month?


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## vandriver (6 Nov 2012)

dree812004 said:


> Yes it is a credit union loan I am not great at calculations hence how I am in this pickle but from my last slip when I was in there it said something like 190 off the loan 130 interest per month?



Yes but that changes every month.Your interest bill decreases and the amount to the loan goes up.In fact at your current repayments,the loan will be gone in 3 years.


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## Brendan Burgess (6 Nov 2012)

Hi dree

If it's an Irish credit union, the highest rate they can charge you is 1% per month on the outstanding balance.  Most charge a lot less than this.

There is no penalty for increasing the repayments. You will save a lot of interest by doing so.

Do you have money in a share account? If so, ask them to set that against the outstanding balance to reduce the interest charged.


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## dree812004 (6 Nov 2012)

Brendan Burgess said:


> Hi dree
> 
> If it's an Irish credit union, the highest rate they can charge you is 1% per month on the outstanding balance. Most charge a lot less than this.
> 
> ...


 
I have 1900 euro so I think it cannot be touched until it is matching the loan amount left over.

So just say if I was able to free up 1000 a month and blast it off the loan if would really reduce it do you think with the money I have in shares and putting a 1000 off a month I could nearly clear it in the year?


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## Crugers (6 Nov 2012)

> I think it cannot be touched


It can be "touched" by only with the approval of the CU.


> I could nearly clear it in the year


With 10k outstanding and interest on that sum running at < 100 per month - yes you should have it paid within a year if you paid 1000 per month.
If you use the shares to pay off the final 1900, you should be clear in +\- 9 months.


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## dree812004 (6 Nov 2012)

Crugers said:


> It can be "touched" by only with the approval of the CU.
> 
> With 10k outstanding and interest on that sum running at < 100 per month - yes you should have it paid within a year if you paid 1000 per month.
> If you use the shares to pay off the final 1900, you should be clear in +\- 9 months.


 
Thanks for the advise I know if I can clear this loan I can get on top of things again.


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## Brendan Burgess (6 Nov 2012)

It might be worth putting all your figures up for a Money Makeover

If you have debts which are more expensive than the CU, then it does not make sense to prioritise paying off the CU to get on top of things.

Brendan


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