cant be bothered to sign up to the money savings expert forum so here goes: I borrowed £8000 for a career development loan, to be paid back over 60 months, im 15 in, only just realised the interest rate is really bad (12.9%), by my calculations i'd need £6700ish to settle the loan now, it looks like the more you borrow the better the interest rate, I could get 8.7% if I borrowed the amount I need, but if I were to borrow an extra £800 I could get an interest rate of 7.6% which is considerably lower than my current 12.9, and it looks like this extra £800 would only cost me an extra £803 to pay back, so my questions are if I were to do this would there be any problem in just putting the extra unneeded £800 straight back into paying off the loan (seems too easy why doesnt every one do this?), all I can find is
We will determine your settlement date and any rebate of interest to which you are entitled in accordance with the Consumer Credit (Early Settlement) Regulations 2004. If the agreement is for a term of more than one year, we may charge you one month’s interest to cover the cost of setting up your loan."
and 2ndly are there any advantages to sticking with the career development loan? they were pretty good in that when I re-left uni I didnt have to pay interest whilst I was unemployed but I think now ive started paying it back it is just a normal loan