Urgent help on repayment amount needed

UrgentHelpNeeded

Hi All,

My first time posting on here so hopefully I will put all the info’ needed for some help on here at the first attempt.

I took out a loan with Blackheath Loans using a guarantor in April 2008, and until recently had no problem, although their interest rate is stupidly high. I realised this at the time and appreciate that.

I have a made a number of payments since then, always to time, deferring three times (to which they agreed) accepting that the overall balance was likely to increase. However they are now claiming that since December, they have received no payment (despite my bank statements showing otherwise!) and are now starting to threaten my guarantor. As it was only a 2 year long, and only has 2 months left to run on it, I just want to pay the remainder off and have done with it. However, when I asked them for a settlement figure, the one they quoted me was over half what I originally borrowed (£1,209). I’m not fussed about paying them, I just don’t want to be overpaying them!

I borrowed £2k over 2 years. Having checked the credit agreement, there are 2 rates given – interest rate of 66% pa with interest added daily, and an APR of 75.11%. The repayment rates were increased after both deferrals to take into account the increased interest to make sure that no additional duration was added to the agreement. There are no early settlement penalties.

Can anyone give me a simple-ish formula that would let me work out how much I should be paying them as their settlement figure seems very high! Too high!!

My guarantor’s wife is currently seriously ill and doesn’t need this company ringing him as late as 9.30pm at night and so any help to help me get this sorted as soon as possible would be appreciated!!

Thanking you in advance!

Tixy

Hi

What you should pay will depend on the amount of months you deferred and what your payments increased to.

Can you do a spreadsheet? This is what I would do (not sure if its simple or not!)

Start with the months in column A May08 to April 10
In Column B put the opening balance so in B1 2000 for the first month. In future months it will be the previous months opening balance + interest - repayment.
In Column C work out the interest charged so B1 * 75.11%/12 to give the monthly interest
In D put in your repayment amount.
Copy the formulas down for the next 24 rows.
To start with have the sheet as though you made all repayments on time and as £163 (or whatever the figure was) - then check you get back to roughly zero at the end of April 2010.

Then you just go in and remove the payment from the months you didn't pay and alter the repayment in future months to what you have actually paid.

That should give you your outstanding balance.

Or if you tell us what months you deferred and what the payments increased to, someone will work it out for you!