I would love someone to tell me why I should pay off a car loan of €15903 with almost 3 years to go (will save €681.50 by paying €5221.50 now) with Bank of Scotland Ireland.
If I invested this money with the same bank (using their online calculator) 4% over 2 years, I would get interest of €1297.68.
I thought that paying ones debts first with SSIA money would yield greatest savings.
Sorry, I had a typing error. I have pasted and corrected below.
Original loan was €18000 over 4 years, 1 year repaid.
I would love someone to tell me why I should pay off a car loan of €15903 with almost 3 years to go (will save €681.50 by paying €15221.50 now) with Bank of Scotland Ireland.
If I invested this money with the same bank (using their online calculator) 4% over 2 years, I would get interest of €1297.68.
I thought that paying ones debts first with SSIA money would yield greatest savings.
Hi, I got them to post me a quote which says the amount required in full and final settlement of agreed loan of€15903.00 is €15221.50 on close of business 30/3/2007. I have paid almost 1 year off the 4 year loan.
The amount loaned was 18000
Amount in interest is 2506.50
According to our statements the direct debit is against the sum of those.
If we now owe15903 and settle now we only pay 15221.50 saving over 600 surely we did not pay interest up front?
You are right, I have paid around €4500.
But can you tell me thewatcher, would I now be better off clearing the loan or investing the money in Halifax at 4% over the 2 years.
As you seems to have been done for the interest up front,by clearing the loan now you will at least save yourself €600. Then the money you would have paid off the loan you can stick in one of these for the same period or less.
Or you can stick the lump sum in one of these,but you will be subject to DIRT at 20% of the interest(with both options) and you will still have to pay off the loan here and deduct the €600 from whatever you get in interest .