My maths is terrible. I’m trying to work out whether I can pay off a loan sooner and save myself any money. (It’s already nearing the end of the loan period so I recognise I’ve already spent a huge amount on interest).
I have a loan I make quarterly payments on with an interest rate of 5% (not sure how it is compounded?) The total payoff amount is £2200 (it started at £10k) but I can’t afford to pay it in full right now. My quarterly payment is £287 and I usually put a bit extra towards it (£300 total). Has paying a small bit extra actually helped me pay the loan of sooner, or have I just giving the loan company extra money? Does it make any difference for the remainder of the loan period? From what I can work out, I can continue to pay it quarterly for the full term or pay a bit more and be done a bit earlier but it only saves me £30 or so. Is my maths mathing?