Satsuma loans enquiry
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Hiya was looking at taking a loan out with satsuma loans
Can anyone help with how satsuma loans work out there interest as looks like it’s cheaper to borrow same amount over a year then pay it off in 7 months
For example a £1000 loan would cost
3 months - £1,476
4 months - £1,612
5 months - £1,760
6 months - £1,896
7 months - £1,995
8 months - £2,000
9 months - £1,998
10 months - £2,000
11 months - £1,991
12 months - £1,992
Why is it £3 cheaper to pay over a year then 7 months as surely u are saving 5 months of interest
Can anyone help with how satsuma loans work out there interest as looks like it’s cheaper to borrow same amount over a year then pay it off in 7 months
For example a £1000 loan would cost
3 months - £1,476
4 months - £1,612
5 months - £1,760
6 months - £1,896
7 months - £1,995
8 months - £2,000
9 months - £1,998
10 months - £2,000
11 months - £1,991
12 months - £1,992
Why is it £3 cheaper to pay over a year then 7 months as surely u are saving 5 months of interest
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Comments
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Forget Satsuma loans, they are payday lenders.
Enter your details below, what do the results say?
https://www.moneysavingexpert.com/eligibility/loans-calculator/
For such a small amount, can you not ask your bank for an overdraft? That will be so much cheaper than a loan.
What is the money for? Any friends/family you could ask?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
Echoing what Candyapple said - forget Satsuma Loans, they are a payday lender. This is coming from someone who used their services many years ago.
I would strongly urge you to look elsewhere for the money you require.0 -
Thanks for advice, I was looking for Loan as have had lots of problems in past, have dealt with most now but there is one massive loan on my credit file from 2-3 years ago for £4,000 that they have agreed to close account and settle the loan for £1000, thought if I could get the £1000 I could pay it off and then even with paying satsuma £1992 over the year would still save myself £2,000 on other loan, may look at other options0
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If you are prone to taking out small loans such as this, then Satsuma (Provident) will hound you until you are well and truly stuffed. Borrow £1000, make three months payments and they will try to make you believe that you are a fantastic customer who is well in control of your finances. In fact, you could well afford another loan. Borrow £2000, pay off your first loan and your monthly payments will hardly increase at all. Oh....and Christmas is coming...perhaps a second, smaller loan, say £500. You’d hardly notice the difference........honest.
It’s up to you, but I wouldn’t, if there was any other way.I came into this world with nothing and I've got most of it left.0 -
Payday loans are capped, which is why the numbers get odd after 7 months:
"Borrowers must never have to pay back more in fees and interest than the amount borrowed."
https://www.fca.org.uk/news/press-releases/fca-confirms-price-cap-rules-payday-lenders0 -
Payday loans are capped, which is why the numbers get odd after 7 months:
"Borrowers must never have to pay back more in fees and interest than the amount borrowed."
https://www.fca.org.uk/news/press-releases/fca-confirms-price-cap-rules-payday-lenders
This right here.
Paying double the amount back over 7 months is scary high interest to begin with.
Considering some companies charge way over double the capital in interest over a longer period, these really should be capped also in my opinion. Otherwise suddenly these companies will suddenly market more products that don't count as Short Term Lending just to get around this.
Also, if you really needed to spend £1,000 on something, you'd have higher protection, and be able to pay it off far cheaper even with a relatively high interest Credit Card.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
Look at your spending and cut back.
A bit risky taking out a payday loan.0 -
If you're suggesting you can make repayments on the loan in 7 months, that works out around 286 pound a month, you'd be better served to tell the people who have settled at 1000 pounds you will take 4 months to pay them and that's the best you can do.
If you can do that with the first 250 up front then you should have every chance.
Good luck0
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