How paying off a logbook loan early works
In the UK, title loans are known as logbook loans. They use a bill of sale, which means the lender owns your vehicle until you repay. Interest rates are usually very high, so clearing one early can save a lot.
The calculator keeps your normal monthly payment the same and adds your overpayments, so the loan is paid off sooner. It works month by month, charging interest at one twelfth of the annual rate on what you still owe.
Worked example
On £2,000 at 60% with 18 months left, the normal payment is £171.09 a month and the interest would be £1,079.66. Paying £50 a month extra saves £350.37 and clears the loan 5 months sooner.
Paying £100 a month extra instead saves £520.72 and 8 months. A one-off £500 lump sum now saves £556.07 and 6 months.
Settling early
You have a right to repay a regulated consumer loan early, in full or in part, though the lender can make a limited charge. Ask the lender for a settlement figure, and make sure the bill of sale is cancelled once you've repaid.
If you're struggling, MoneyHelper can point you to free, confidential debt advice.
Inputs for the title loan payoff calculator
Logbook loan balance
The amount left to repay on your logbook loan.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many months are left on the loan.
Extra each month
The amount you'll pay on top of your normal payment each month. Enter 0 for none.
One-off lump sum now
A single overpayment made now. Enter 0 for none.
CALCULATOR QUESTIONS
Title loan payoff calculator questions
Can I pay off a logbook loan early?
Yes. You have a right to repay early, though the lender can make a limited charge. Ask for a settlement figure.
How much would £50 a month extra save?
On £2,000 at 60% with 18 months left, £350.37 and 5 months.
When do I get my vehicle back?
The lender owns it until you've repaid. Make sure the bill of sale is cancelled when you finish.
Where can I get free help with debt?
MoneyHelper can point you to free, confidential debt advice.