Savings Expert

question

Posted by: Thandi JHB | 2016/08/06 09:47

i have a loan of R100000 im paying R5250pm for 60mths ,i want to pay extra R2000 on my loan how long will it take me to pay it off.

My husband and I ,We are planning to buy a house however we have this loan that is taking out lot of cash we want to pay it off as soon as possible because we still have to save up for house insurances.

expert answer

Posted by: Gerald Mwandiambira | 2016/08/31 17:43
If you have this loan, you are paying a shocking 60% interest per year. This is a very expensive debt! If you pay the extra R2,000 you can pay it off  36 months earlier (3 Years). This is not a bad idea at all.

I suggest you seek further advise and I can assist on www.askgerald.co.za

Gerald


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user comments

Posted by: Livhu | 2016/08/16 15:33
To answer your question accurately, one would need more information. for instance how long ago did you take the loan, what's your interest rate, how frequently is it compounded? Your interest seems to be sky high though. I wanted to respond but I don't believe my calculations are correct. Its unbelievable how much interest you're paying.
Reply to Livhu

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