Benefits of Paying Ahead
There is no limit to the amount you may pay each month. By paying ahead of schedule or paying more than the monthly payment amount due, you:
- Pay less interest over the life of the loan
- Repay your loan earlier
To experience these benefits, you must continue to pay at least your regular payment amount every month regardless of the current amount due. If the current amount due is $0 and you decide not to pay, your loan may no longer be paid ahead, and you may lose the associated benefits.
The bottom line? Pay more now to save more later.
How to Get Started
You can pay an additional amount at any time using the payment method of your choice .
We always apply additional payments to any interest that has accrued to date and then to your principal balance. But how this affects your next monthly payment depends on whether you use Direct Debit or not:
- If you do not use Direct Debit : Your current amount due will be less than your regular monthly payment (the regular monthly payment amount minus the additional amount that you paid).
- If you use Direct Debit : We withdraw your payment (plus any additional amount you request) through Direct Debit every month regardless of your paid ahead status.
Don’t understand how this works? Read some examples: