Interest on payments

Something in relation to this came up on another thread and I didn’t want to hijack the thread.

If I decide to make a purchase e.g of £1200 and spread this over 12 months instead of the interest free 3 months. I’ll obviously have to pay interest on this at the agreed rate. But what happens if I pay the amount back within 6 months instead of the 12 months? Have I been paying back interest for the 12 months rather than the 6 month?

I’ve just been paying off bills and not changing the plan and reducing it to a 6 month plan and then paying it off (if that makes sense?)

Does Tymit recognise this? Or have I been over paying Tymit? If I’ve been over paying. Is there anything about this?

Hi, If you reduce the plan to 6 months the interest would be recalculated automatically.

If you leave it as 12 months and just pay more any excess would just sit as credit and it would still be paid off over 12 months without reducing interest.

I’m not 100% sure if that is what you are asking so feel free to clarify if not.

Thanks.

I wasn’t sure if the interest was fixed. So if I didn’t reduce the payment plan but paid the payment off early. Would I continue to pay the 12 month interest despite paying it off in 6 month.

In a nutshell yes, you will have credit in your account but a monthly bill payment for the interest on the 12 monthly plan. So you will need to re-plan a purchase if you want to change the amount of interest you pay, depending on how much extra you have, you could change 12 month to either a 3, 6 month plan.