A big invoice lands, a busy season beats forecast, and suddenly you could clear the loan.
Early settlement is the principal still outstanding plus the interest part of your next instalment. All the interest in later instalments is simply never charged.
On a £24,000 loan over 12 months at 11.99%, settling after six payments costs about £12,250 instead of roughly £12,640 in remaining instalments.
The loan must be up to date. If an instalment is overdue, pay it first and the settle button comes back straight away.
