OUtstanding loand balance going UP not down, despite payments?!

debtfreesomeday

Can anyone answer a quick question for me please? I have a personal loan with Lloyds TSB which is now a year old - we pay £168.50 a month at 8.9%. However, I've noticed that last month the outstanding balance was 9401.68 and after making this month's payment by direct debit it's 9479.13. Some months it goes down after the payment, some months it goes up - anyone have any ideas why? I'm guessing it's interest related somehow...


Thanks!
x

Rafter

Doesn't seem to make sense - your average interest bill is about £70 though, so perhaps your current balance has had interest for the month added on but not your payment taken off.

You seem to be on the right track clearing credit card (more expensive) debt first before tackling your loans.

R.

debtfreesomeday

Hmmm, thanks Rafter - you might be right on that one. I'll give it a couple of days and check the balance again and see if the payment comes off of it.

As for credit card, yes - we're trying to get rid of that one asap and are doing ok. Should be gone by the end of the year hopefully, then we'll tackle the loan we can overpay on which should reduce the term by about 3 years!

Thanks for taking the time to reply x