Snowballing question

**Bournecrazy** · 05-13-2008, 01:20 PM

I am thinking of snowballing my loan i have with the bank, i am just wondering how would the bank react to the extra payments and if its paid off early would the bank ask for interst on the remainder months i did not pay

**Bournecrazy** · 05-13-2008, 01:24 PM

i looked on my snowball sheet and if i paid an extra £4 a month i can pay off the loan 5 months early.

my car insurance also goes down in monthly payments after october so i will def put that exta money towards it

**Bournecrazy** · 05-13-2008, 01:42 PM

i meant £40 not 4 lol

**mommy4ever** · 05-13-2008, 02:02 PM

It would depend on the term of the loans. Some will penalize you others have open policy that you can pay as much as you want anytime. Some say you can make x amount principal payments before we penalize you. So read the terms of your loan and it should clearly state the conditions of prepayment in there.

**Bournecrazy** · 05-13-2008, 02:19 PM

i just phoned the bank, they said it is okay to pay extra payments as long is its over £200, and i wont get charged and get interest paid back to me. so im going full steam ahead. oh and £200 extra saves 3 months of payments

**mommy4ever** · 05-13-2008, 02:20 PM

Excellent! WTG!

**Bournecrazy** · 05-13-2008, 02:25 PM

still got 2 years left on it so i think im only going to do about 3 extra payments it will be paid by Sept '09 rather than april '10 which will sae me loads in repayments of £118 a month

**Frugal Nurse** · 05-13-2008, 07:43 PM

See what a little forethought can do!

**Bournecrazy** · 05-14-2008, 09:52 AM

i really i hope i can do it and get a few payments done, i just want to pay for my half of the holiday and up coming dentist bills before i start paying the loan off