How much do I now owe?

Common sense would ALWAYS tell you that paying off early will cost you less.

So you're paying £205.06 per month, right? Assuming there would be 32 payments left, I reckon you'd owe about £5670, if you've just made the 33rd last payment.

So you'd save yourself about £890 by paying it off now, as against 32 x £205.06.

That's assuming they operate on a proper decreasing balance basis, and don't impose an admin charge for early repayment.

Alternatively, the might operate on a linear decay basis, with the interest apportioned by the Rule of 78 (or in this case of 3570). The original total charge for interest would be some £5225, and you'd have 528/3570 of it still to pay, which you would save, i.e. some £773. You would need to repay £12000+£5225-£773-52x£205.06, which is £5789 (plus any charges).

E&O(which Tim will no doubt highlight shortly)E

"Ken" wrote

Asking M&S? That ought to give the most reliable result.

"T." wrote

Rubbish. Common sense would tell you to compare the interest being charged on the loan, to the interest you could gain elsewhere (eg in a savings a/c). ONLY pay it off early IF the loan rate exceeds the available savings rate (which, at 11.5% APR loan rate here, probably does apply!).

"Ronald Raygun" wrote

No need - there's not even a hair to split!!

Yes, as the poster (and you) said. "Common sense". Lua