emergency,loan info needed

feestee

i have a loan and have the possibility to pay it off early.there is a 10% settlement charge,which i'd be able to pay...but.... can anybody tell me if i will have to pay the interest(16%)? if so,i wouldnt be able to settle up! i am currently off work through illness and am struggeling to pay.so to have the chance to pay off early will be a huge huge help!

theartfullodger

Can't tell from what you've told us:

It depends on the loan company, which of their various types of loan you took out etc. Have you any paperwork from them??? It should have a section on early repayment & what they will charge.

Alternatively 'phone them. Or if you don't like 'phones, write.

Cheers! Sorry to here of your illness: Get well soon!

Lodger

feestee

thank you theartfullodger,
heres a few more details; company is lloyds tsb
its a fixed sum agreement,
as stated, the settlement fee is 10%,but doesnt specify if i have to pay the interest on top of the settlement charge.
feestee

thriftymomma

feestee wrote: »

thank you theartfullodger,
heres a few more details; company is lloyds tsb
its a fixed sum agreement,
as stated, the settlement fee is 10%,but doesnt specify if i have to pay the interest on top of the settlement charge.
feestee

Could you give them a ring and ask?

CLAPTON

when did you take the loan out

what sort of loan is it ... unsecured persoanl loan, secured loan, HP etc

who is it with?

why do you say there is a 10% charge for early settlement..is it in the T&Cs?

feestee

loan started June 07
its an unsecured personal loan with LPI
with lloyds tsb
the settlement is at 58 days interest rather than the 10% i mentioned

CLAPTON

well 58 days interest seems very reasonable.

feestee

thank you to everyone
i have now found the relevant paperwork on early repayment,58 days seems to be reasonable.
im still confused on how they come to the final figure though..........my maths and there maths dont tally and now they wont answer there phone so i cant get a breakdown of the balance.i have tried ringing the department 20 odd times today and bar once each time the phone connects then is cut off....good customer service eh!!
i borrowed £5100 and with the LPI the total was £5598.98
paying £142.78 p/m since june '07
i make that £3141.16 repaid
leaving a balance of £2457.82
but....lloyds say the balance is £3741.85
and cant get hold of them to quiery

CLAPTON

what was the APR?
what period was the deal over?
how many payments have you made

was there any payment free period or any missed payments

feestee

its at 16.6% apr
over 55 months
have made 22 payments
no missed payments or free periods

CLAPTON

you borrowed 5598 including LPI (which I assume is insurance)

and made 22 payments of £142

this works out that you have paid 3141 in total of which
1357 is interest and 1782 is capital
so that means you owe about 5598 - 1782 = 3,816 approximately... so it looks as if the Lloyds figure is about right.