HFC store purchase loans please help i dont understand!

l1ukeRS

Hi this is my first post i am really confused and need some help.

I bought a TV from currys just before Xmas in 2007 i was only just 19 and didnt, still didnt have a clue about loans etc, i took the payment option out on the TV over 48 months and i thought all was good.

I have a bit of cash at the minute so i want to try to settle this now so not to incur too much interest.

The Deal i took out

TV Cost - £756.99
Period - 48 months
APR - 24.9 %

total = £1153.44

now where i am confused is that i have so far made 20 payments of 24.03p to them which totals £480.60

i rang today for a settlement figure and the gave me the figure of £531.27

Now if i paid that, combined with what i have already paid them i would pay them a total of £1011.87 after 20 months which is only £141.57 shot of the total amount i would pay after 48 months

How does that work have they charged me the interest upfront so i have to pay that off before i start to actually reduce the total cost of my loan or what?

I just dont want to be ripped off but that seems far too much to have to pay.

Please can someone shed some light in plainenglish for me to give me peace of mind, and or guide me what to do and say to them to reduce this.

Thanks Very Much

Luke

immoral_angeluk

Does that figure include an early settlement fee?

RAS

Did you pay for PPI in the original account? If so, you need to know if it was single premium or not.

Early settlement of these sort of debts often incurs penalties as well.

l1ukeRS

no i didnt have PPI the figure they gave me for earlyi settlement is £531.27

cheers

immoral_angeluk

Sounds like it's accruing interest rather than it being front loaded.. so part of your payment is going towards interest and part is going towards loan amount..

ladybez

From what I remember, and things may have changed, with a personal loan of each installment is credited partly towards the capital and partly towards the interest element. In the early months of an account more goes towards the interest than the capital, by the halfway stage each payment is split about 50-50 and at the end of the account more goes towards the capital than the interest, as any rebate is only on the interest element, it often seems a small amount. Hope this makes sense (sorry brain isn't working very well today!!)

l1ukeRS

i kind of understand you, so i am stuck with it then as it is? i might aswell just keep paying if i cant get a decent setlement out of them as it only 24 quid, allthough i do have another one too for another tv at 11.00 per month

i am definatly not ever going near anyhting like this again though

debtfreenewbie

HFC are not helpful. We still owe them 400 four years after buying a pc which cost 600.
They did offer me a deal though was 50% what I owed but I didnt have the cash.
Can you increase your payments every month or try and do a deal with them if you can pay it off.