Having a loan can be a huge drain both emotionally and financially, if the opportunity came for you to repay your loan in full early I am sure most of you would jump at it, but have you considered the early repayment charges?

Thinking your lender would be happy to get you off their books may make sense in your mind, but the truth of the matter is your loan company actually prefers you to make the repayments over the agreed length of time.

Many loan companies charge a penalty fee if you want to pay your loan off early. In the financial world and in your terms and conditions this is called early redemption penalty, fee or financial penalty.

With most loan lenders the charge is around one or two months interest, it gets worse, the majority of lenders will charge you more the earlier you choose to pay off your loan.

So before making that call to settle your loan you better check your terms and conditions.