As I told you on the previous post, I’d be paying £1100 this month (on top of the monthly payments) towards the initial £10000 loan.
I have received the loan provider letter and by paying a further £1100, I have saved £668.58 in interest payments. The overpayments bring the total interest saved to about £2057. My leftover amount is now £8K (from £14K as total payable amount)
This means that, theoretically, for this month, brought me a net positive of £1532.58 of money that is not mine.
– Monthly spending of:
1. £198 + £388 for credit card payment
2. £119 of loan payments
– Received/Saved:
1. £1569.86 of dividend received
2. Saved £668.58 in interest payments.
3. Added £250 towards the loan pay (important for interest savings, but not counted on the net positive calculation)
Although I’m about £1K negative due to stock volatility, I am still amazed with the results.
A loan that would take me 10 years to pay, it’s going to take me around 6 months to pay, using cash that is not mine.
One can start wondering, can we use this strategy to overpay our mortages? Or to increase our income to a value higher than our normal job?