Settling a loan early

Request a settlement figure

Ask the lender for the amount needed to settle on a chosen date, a breakdown and the validity period. Do not simply pay the balance shown on an old statement or in a generic calculator.

Read the breakdown

Ask how outstanding principal, accrued interest, fees and insurance are treated. The saving depends on the agreement and the settlement date; an example on BluCross cannot determine it. Clarify any charge you do not understand before paying.

Confirm closure

Pay using verified instructions, keep proof and ask when the payment will be allocated. Obtain written confirmation that the account is settled and check any credit-bureau update. See paid-up letters. For the statutory framework, read the National Credit Act.