A Payment A Day - Part Six!

jo41

nickynoo08 wrote: »

Afternoon everyone,
£1.50 to my pad acc, £1 to my xmas funds and £1.70 into my pad tin

Total - £4.20

Bit of advice please. Made myself an appointment at the bank for next week as i'm a bit confused with the interest rate on my loan. I've been happily paying it since feb this year with some overpayments too but the interest i'm paying doesnt seem to make much sense. I've been looking through my monthly payments and my interest seems to go up and down each month As far as i was aware my interest was fixed till the end of the loan and thought my interest would go down each month accordingly like a credit card would. This is what i've been paying for the last few months
Aug - £96 min payment £59 interest
Sept - £96 min payment £62 interest
Oct - £96 min payment £58 interest
Nov - £96 min payment £61 inerest
I nearly died when i was how much interest i was paying each month, no wonder my balance hardly goes down! Is this or does it look right to you? Sorry for all the waffle i just dont want to look a total plank when i go to the bank. Any help much appreciated

Not that knowledgeable on stuff like this and I'm sure someone will come along soon but a couple of things strike me. Why does the interest flucuate; is that where you make more/less on the overpayment? Is there any way you can increase your minimum payments as that interest seems very high and most of your minimum payment is interest?
What rate is the loan at?
I'd still go to the bank and get them to go through it with you.
Jo x

Paulgonnabedebtfree

so_here_we_are wrote: »

Hooooray, you know when ever I post and say I don't know how much I can pad, walk to work and find money, not lots but a bit. 3p found and padded. Just a quick question and I know every little helps but does anyone get a little disheartned when only little amounts come off Debt?

Hope we are all having a good day

SHWA

Yes I do sometimes get disheartened when only small amounts are being paid. It's difficult at times - not least because of the anxiety about my forthcoming, as yet uncalculated tax bill in January.
I can live with small amounts coming off but the bit that really pees me off is when I sometimes need to temporarily increase my debt level. I don't do this lightly but there are times when I must resort to the least bad option. For inmstance, I had to use a credit card to get the clutch replaced in my van a while back (£600+). The alternative was no van and no income. I did shop around re the clutch too. It's an expensive job in my van due to having to move other things out of the way. In fact, the slave cylinders in those things are prone to failure so they change them automatically while they have it stripped down.
Then I needed another phone. My one indulgence was a halogen oven but even that was with one eye on reducing the fuel bills. I haven't used it yet as I had to clear out the garage to return it to the council to save the rent money. At the moment, my flat resembles the inside of a garage and I'm having to walk around and over things just to cook a meal or have a bath. It will probably be 2 - 3 weeks before it stops looking like a bombsite. Oh how I hate living like this.

Silaqui

Woop woop I just won another £50 on free bingo!
x

Paulgonnabedebtfree

nickynoo08 wrote: »

Afternoon everyone,
£1.50 to my pad acc, £1 to my xmas funds and £1.70 into my pad tin

Total - £4.20

Bit of advice please. Made myself an appointment at the bank for next week as i'm a bit confused with the interest rate on my loan. I've been happily paying it since feb this year with some overpayments too but the interest i'm paying doesnt seem to make much sense. I've been looking through my monthly payments and my interest seems to go up and down each month As far as i was aware my interest was fixed till the end of the loan and thought my interest would go down each month accordingly like a credit card would. This is what i've been paying for the last few months
Aug - £96 min payment £59 interest
Sept - £96 min payment £62 interest
Oct - £96 min payment £58 interest
Nov - £96 min payment £61 inerest
I nearly died when i was how much interest i was paying each month, no wonder my balance hardly goes down! Is this or does it look right to you? Sorry for all the waffle i just dont want to look a total plank when i go to the bank. Any help much appreciated

It's hard to be certain without seeing the agreement but it's possibly calculated each month based on which date in the month the payment goes out. Delaying the direct debit a couple of days due to it falling on a weekend (i.e. not a bank working day) could make as much as £4 difference by the look of it. However, this can be clawed back the following month if it goes out on the correct date. This assumes that interest is charged on the daily outstanding balance. On my fixed rate loan, the annual statement shows the interest reducing a bit each month as there is a bit less owing after each payment. They do it this way in order to make it less viable to pay the loan off early - though I believe the regs may have changed a couple of years back.
Of course I can only guess at this and may be totally wrong. I believe that the overall trend for the outstanding interest will be downwards each month but it may take a few months for this to become more noticeable due to the slight fluctuations. Also, is your loan flexible enough to allow extra payments without penalising you? With some types of loan, you can be better off allowing them to run to full term or by saving up the money you use as extra payments until such time as you can settle in full.

Wesker

Evening all...

£14 to A&L CC please :j

angelicmary85

Flower08 wrote: »

I agree with you completely, i dont really see how anyone could benefit financially by consolidating.

I can't see it either.

euronorris wrote: »

It can be beneficial if the circumstances are correct. It depends on the interest applied, the length of the loan, the reason for the debt and the individual's self control.

Someone has to really have had their LBM for this to work though. ie, gets rid of all other credit and not ask for anymore also.

Unfortunately, most of us are here because we struggle with the last part and the best solution for us, is to do it the long, hard way.

I understand what you're saying but I think that I'm trying not to look at it as being the long and hard way...I'm looking at is as being a lesson well learnt! I know some of you are a wee bit older than me but if I were to be completely honest (please don't shout at me!) but I don't still want to have debt when I get to 30/40 years old. (runs to hide in the corner!! )

Paulgonnabedebtfree wrote: »

Yes I do sometimes get disheartened when only small amounts are being paid. At least it's getting paid and you're doing something about your debt.

My one indulgence was a halogen oven but even that was with one eye on reducing the fuel bills. I haven't used it yet as I had to clear out the garage to return it to the council to save the rent money. Could you please let me know how you get on with it once you've tried it? I want one aswel as my oven doesn't work but can't fork out for new cooker just now.

At the moment, my flat resembles the inside of a garage and I'm having to walk around and over things just to cook a meal or have a bath. It will probably be 2 - 3 weeks before it stops looking like a bombsite. Oh how I hate living like this. Try to remember that things could be worse...you might not have anywhere to live or a job or a warm meal at the end of another long day

tomtombeanie

evening all and a big welcome to jasper!

PAD of 10.00 today to boys' savings accounts.

green, i'll try the link again at the bottom of this post - but just google cheshire dogs home to see the one near me. i have a feeling that they wouldn't offer general vet services to the public, but you could always ask - you never know!

tired today, been up late watching i'm a celeb.

xx ttb

http://www.dogshome.net/

jediteacher

Sorry not been padding for a few weeks. Money very tight plus had parents evening at school. A total of 37 parents to see over two noghts. Loads of paperwork to do for that but at least that's it until the next one in February.

Anyway pad for today is £6.70.

cashless_wonder

Nowt from me again today . . . Knackered want to sleep for about 30 years !

PurpleJellyFish

Evening All,

Hectic few days for me so haven't managed to post - still being PaDding though - £20 please Sarah