Overpayments question

I have a question about interest, which I can’t find. If I have a large payment split over a 12 month plan and decide to make overpayments to pay it off quicker will the interest reduce with it or will I have replan it

You would need to replan the purchase to pay more towards it. Tymit are aware that some users may want to pay more towards a specific purchase but for the moment replanning is the only way to do that.

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Thanks Billy, thought this would likely be a case. How annoying, very little info in their faq or support sites about this, I guess replanning also reduces the interest paid?

I hope in future they add an option to pay towards a purchase would be much better

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No problem, yes that’s right reducing the payment plan also reduces the interest to be paid. I’m not sure it displays correctly in app though when moving the slider but I’m assured it does indeed reduce the interest once replanned.

Yes there was some discussion around this and allocating payments to specific purchases so hopefully something for the future.

So, say I have a £500 charge, and initially put it on 12 months. Total to pay back is £556.08.

Then I credit £300 toward my account.

Can I change the owed amount to £200, thus reducing the interest charge? If not what happens to the £300 I have paid into the tymit account?

Hi and welcome to the community.

If you simply pay in £300 and do nothing this will clear this month’s bill and the credit will be carried forward to future bills.

While you cannot credit a payment to a specific purchase what you can do is reduce the payment plan to a shorter timescale to pay off quicker and reduce the interest.

If you reduced it from 12 months down to 3 for example and pay more this month and possibly next month as well or even replan again next month to get as close as you can to your £300 target.

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I also have another workaround that would achieve what you are attempting and save you from paying any interest at all. A bit of legwork but it will save you £56

So you already have £300 out of the £500 and want to reduce the debt down to £200 to save interest.

Why not reduce it down to 1 month so the £500 is payable this month with zero interest, take your £300 you have spare and take advantage of the £200 fee free cash withdrawal Tymit offer. Pay that into your bank account and you now have the full £500 to clear that purchase.

This will leave you owing Tymit £200 for the cash withdrawal next month which you can spread over 3 months to completely eliminate any interest charges.

It reduces the debt to £200 as you had hoped for and it saves you quite a bit in interest as well, Job done.

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I think I have spread purchases longer and just paid it off earlier but then still paid the same interest :see_no_evil:

Very clever @Billy ! Thanks for the guidance.

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