Question regarding direct axis loan

[far2000]

Hi all.
So i took a DA loan recently for 55k, repayments are killer as im paying 2k pm over 5years, like 27%interest.

My question is if I have about 20k to pay towards the loan, will it go towards my capital account so it lowers to 35kfrom 55k or does it just remove the interest part of it?.

 

[DapperDanMan]

Why not both?

(Also, somewhat related: Why not just make a run for it and start a new life elsewhere?)

 

[Pansyfaust]

Why would you do that to yourself?

 

[far2000]

Why not both?

(Also, somewhat related: Why not just make a run for it and start a new life elsewhere?)

ON MY STATEMENTIT SHOWS I OWE LIKE OVER 90K with the compounded interest.

 

[far2000]

Why would you do that to yourself?

it was an emergency. never had much choice but plan is to pay it off sooner.

 

[WollieVerstege]

It would depend on the terms of the contract you signed. It should be explained in the Ts&Cs.

Broadly there are 2 outcomes,
1. The capital is reduced and accordingly the monthly payment reduces, but the term stays the same.
2. The payment stays the same but the term is reduced.

 

[DapperDanMan]

it was an emergency. never had much choice but plan is to pay it off sooner.

New Plan: Run off and start a brand new life elsewhere. (After you've convincingly faked your death, of course!)

 

[Snyper564]

it was an emergency. never had much choice but plan is to pay it off sooner.

PAY OFF ASAP STOP LOOKING AT SHARES AND CRYPTO

You essentially buying everything at 27% interest till its paid off

 

[ImagineFZS]

Big oof