right - hope i have done the right thing

kissjenn

tyllwyd wrote: »

I'm not sure it does .... So the total repayable including interest over the whole of the first loan was £17892. You have paid back a certain amount, and you have taken out a new loan which will be £15207 including interest over the period of that new loan. How much would you have left to pay if you don't take out the new loan (ie how many monthly payments and what are they?)

BeautyandtheBeast wrote: »

£13717 would be left to pay with £298.20 per month repayment. You see thats crippling me at the moment and im having to use my CC to last to the end of the month.

Hi BandB

You're doing so well tacking this and I'm embarrassed because I may have this horribly wrong but using the figures above...

You currently have a loan of £13717 (including all interest) which you repay at £298.20 per month.

That would take 44 months (13717 / 298.20) to clear.

You've negotiated a new loan which will cut the interest rate but run an additional 12 months, so 56 months.

New loan of £15207 (including all interest) which gives monthly payments of 15207/56 = £271.55.

That's a decrease of £26.65 (298.20 - 271.55) monthly not £50 and an overall increase in interest of £1490 (15207 - 13717) in interest not £300. You will have to pay the monthly amount of £271.55 for an additional 12 months.

I keep double checking this and can't find a £50 per month saving based on these numbers. Are they correct and if so, is the deal attractive based on the half the savings you'd hoped for per month?

BeautyandtheBeast_3

Hi there - currently i pay £298.20 per month new deal will be £253.45 which is £44.75 so not quite £50 but near enough. The deal is over 60 months with every january no payment month.

BeautyandtheBeast_3

the deal is attractive to me because it means that i have a little extra to allocate to other payments - my salary goes up by gross £251 per month from september but i think i may then incur paying back my student loan (approx £115) also the interest rate is a lot lower. I understand the extra months left to repay and that does niggle at me as i only have 46 months left to pay and clear it.

kissjenn

Hi,

A good deal is one that makes you happy. I just couldn't make the numbers work and wanted to check with you.

I agree 15207 / 60 = 253.45. But you've extended your term by 16 months (you've 44 payments left on current figures) not 12.

Can I ask a question...the "No Payment January". Is that a budgeting thing for after Christmas but you still make 60 payments or is it a truly free month where the bank pay the loan on your behalf that month as an incentive eg you're only liable for 11/12 of the payments so they're knocking over a £1000 off your bill?

If its a free gift whoo hoo - great.

If it's a month where you simply don't pay then the repayments are 60 monthly amounts spread over 65 calendar months ... all the Januarys will be added on at the end.

This loan won't finish until very end 2014 / very start 2015 depending when you start.

BeautyandtheBeast_3

I believe its added on at the end - its an optional extra which i dont have to go for but it would help esp with xmas and having a 6 week gap between dec and jan payday - always a tight one and always where i start bringing out the CC again. I really need to get debts down asap so i can start living again - which will be like you say 2015!!! long time away but my wage keeps rising for the next 6 years at least (i go up a grade each year and each grade has small rise also) - i have been very stupid in the past!!!