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i took out a loan in 2007 and it was for 1500 i was paying the monthly installmenst religiously and when i left my job , i missed 4 months of payments when i started back in my job i arranged to pay more each month to get the loan down when i went into the office they said that i still owe over a thousand pounds i have now got it down to just over 600 pounds , is there any way that i will have paid more than i needed to of as when i spoke to them they stated that every payment i make only 50 pounds comes off the loan and the other 70 pounds is interest could anyone help many thanks Andy
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You will end up paying more in the long run. This is because you have borrowed the money for longer ie up to 4 months longer for the first repayment you missed.
For example, if your interest repayments for £100 borrowed is 10 per month. If you payback £20 the first month, you're down to £90 capital. Interest on £90 is just £9, so you've just saved £1 per month.
In our case however you didn't pay the £20 in the first month so the 2nd, 3rd and 4th month you'll still be paying £10 interest (plus the interest on that interest). This will be owed on top of the missed capital too.
So Welcome's calculations that you have a lot of interest to pay does sound reasonable.
Hope this makes sense!0 -
have they charged you ppi on this also, might be worth checkingAwaiting Inspiration......................0
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