Overpayment Calculator for Loans

You’ve probably noticed the new Santander adverts on TV, Online and in the press featuring Ant & Dec, telling you how much you’ll save if you overpay on your mortgage and to use their overpayment calculator, which is great advise, but not really a new thing.

LoanPig have been doing this for years

LoanPig have always suggested overpaying or paying your Payday Loan or Short term loan off early because you can save a great deal on the interest, as Loanpig only charge you interest on the time you have the money and don’t penalise you for settling early.

Let’s give you a real life example;

A customer of ours borrowed £100 from us over an initial 30 day period, they were due to pay back £124 30 days later, which in itself was a great deal for them as it saved them from going overdrawn and being charges £35 from their bank.

However, this customer contacted us after 15 days and asked if they could settle the loan early, what would their settlement figure be and if there were any penalties or charges for settling early. We gave her the figure of £112 to settle her loan, with no penalty charges.

So she settled her payday loan and saved herself an extra £12 in interest, which in turn saved her from an overdraft fee.

By taking out a Payday Loan and paying it back earlier it cost her £12 instead of £35 in bank fees.

Small Overpayed amounts make a big difference.

Making additional payments on your loan reduces the amount of interest you have to pay, so if you have a £300 loan over 3 months and you overpay in the first 2 months by £30 for example, that £60 comes off your total repayment figure and you won’t pay any further interest on that £60 from the time you paid it.

Whether you have taken a Payday Loan out over 1 month or a Short Term Loan over 2 – 12 months, overpaying a little whenever you can or settling early really makes a big difference to your pocket.

LoanPig Encourages Overpayments

Here at LoanPig, we encourage customers to either overpay on their loan or settle early because it can make a huge difference to the final overall cost of the loan itself, we also try to provide you with hints and tips on budgeting, saving money and general life tips to improve your financial situation where we can.

Overpayment Calculator for Loans, coming soon.