lloyds tsb buy now pay later loan

stephen.rooke

has any one here had a buy now pay later loan, ive been accepted for a loan of £1700, with interest this will be about £2400 over 4 years. i will have the money to pay back the full 1700 plus the 58 days interest charge. if i did pay back the loan in full would lloyds tsb include the full £2400 for me to pay back plus the 58 days interest, or would they charge me 1700 plus 58 days interest

CLAPTON

not very clear... what 58 days interest... have you missed the date for interest free or what?

stephen.rooke

i havnt accepted the loan yet, i have 15 days to decide.

on the lloyds tsb faq it says that

What if I decide I want to pay back my loan early?
You will usually pay a fee to pay your loan back early. Charges for this vary according to how early you decide to repay the loan, but can be up to 58 days interest (up to a maximum of £250) calculated on a daily basis on your remaining balance. You can find more information about this in the Loan Agreement document we will send you once your loan has been agreed online.

CLAPTON

sorry misunderstood you.

if you end early you would pay whatever the outstanding capital was plus up to 56 days interest.. which is quite reasonable

however, the interest rate seems pretty high .. do you really need the loan?

stephen.rooke

i want to buy a car as mines about to die :rotfl: . i want a ford focus which will cost me around £1500, i don't have the cash available at the moment to buy one but will deffinately have the money soonwithin the next 6 months to pay for it, i get paid £500/month and receive full student finance

interest rate is 20%

stephen.rooke

CLAPTON wrote: »

sorry misunderstood you.

if you end early you would pay whatever the outstanding capital was plus up to 56 days interest.. which is quite reasonable

however, the interest rate seems pretty high .. do you really need the loan?

sorry for being a bit thick today (first day off in over a week and tired) does that mean that its the whole amout of interest??

CLAPTON

no
each monthly payment pays the monthly interest plus a bit of the capital back ... so after a few months you owe a little less
when you settle early you must pay the capital remaining plus up to 56 days interest....

so for example, after 6 months you will probably have paid about 150 capital back

so the settlement figure will be capital owing 1,550 plus 56 days interest ..about £45.. so settlement figure will be 15,595

stephen.rooke

CLAPTON wrote: »

no
each monthly payment pays the monthly interest plus a bit of the capital back ... so after a few months you owe a little less
when you settle early you must pay the capital remaining plus up to 56 days interest....

so for example, after 6 months you will probably have paid about 150 capital back

so the settlement figure will be capital owing 1,550 plus 56 days interest ..about £45.. so settlement figure will be 15,595

thanks for your help, i went with the loan and your information is correct, now got the money:money:

di3004

Hi there Stephen,

Hope you don't mind me butting in.

Just to ask, did you request payment protection cover in with this loan ?
If you did not make sure this is not added, because this would be added to your loan and works out costly.

I am only saying this due to my past experience with Lloyds with loans and credit cards they automatically added this without my knowledge where I would not have been eligible anyway.

If they have and you do not want this I would double check and request for them in writing to cancel the ppi now, because I think they do give you either 14 days or maybe 30, check your terms & conditions hun.;)

If they have done this without your knowledge then it was mis sold to you.

I expect you may be aware that you can purchase stand alone cheaper protection cover elsewhere to cover all your credit if for some reason, Sickness and unemployment etc to suit your needs.;)

Hope you don't mind me just popping in here just to mention this.

All the best!

Di.
x

cjinoman

We were told by Lloyds TSB that you could pay off a lump sum, leaving a little to carry on to the full term, thereby not incurring extra fees and therefore paying less interest. Otherwise you have to abide by the rules