credit union - prepayment question

A

assumpta1

Registered User
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I hope someone can answer this as I can't really ask my credit union directly:

I have a loan with the CU approx. details as follows:

remaining loan balance: 12456
repayment amount: 110 p.w. (breakdown differs every week but approx. savings = 5.00, loan 85, interest 25)
savings = 2683
prepayment = 1118.86

My question is that even though the prepayment is a calculation and not an actual sum - does this mean that if I stopped the standing order temporarily (and used the money elsewhere) - it would take 10 weeks for me to get into arrears ? I was thinking this is about 1000 I could pay off something else & then resume the CU loan.

Any thoughts ?

Thanks
A
 
Yeah, as your approx. 10 weeks ahead of yourself, you should be able to defer the payments no problem at all.

It might be no harm though to keep up some small level of regular savings or even a small loan payment (eg. €10 each way) for those 10 weeks, even if you pay it manually over the counter while you have your standing order suspended. If you are applying for another loan in the future, they may question why you didn't pay something every week, but it is unlikely to effect you provided you don't have a record of arrears.
 
Out of curiosity, why can't you ask them directly? I've always found my local CU to be very understanding and flexible with changed circumstances.

Given that you have a history of prepayments, having a conversation should not be a problem. Should it?
 
probably should be fine - though I would prefer to go under the radar rather than have a flag on my account for future reference (i.e. that i had a payment holiday etc.).
 
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