some advice please

preech07

hi guys new to forum bin reading alot about flm loans but mine question is a little different to alot of peoples because mine aint about there late payment charges.

i took out 3k loan in december 2009, is was 3k for 36-38 months.

i pay 130.61 a month but the interest every month is 95.63 which technically means im only paying 35 quid a month off my loan and when you work it ot its impossible that it will be paid over 36-48 months so im just wondering is there anything i can do or say or anyhing. because in the contract it soes say over 3-4 years

[Deleted User]

as the balance reduces then so will the amount of interest each month

KiKi

woodbine wrote: »

as the balance reduces then so will the amount of interest each month

Hi OP

Just thought it might help to explain the good info above (I don't know if you know how loans work so I'll assume you don't and explain - sorry if you do know!).

What it means is that early on in the loan most of that monthly payment is made up of interest - as you've already seen! As you pay it off, less and less of it is interest, and more and more of that payment becomes the actual 'loan' of £3k.

So although *now* £95 of it is interest and only £35 is the loan, by the time you make the final payment, only £10 will be the interest and £120 will be the loan (for example).

I hope that helps.
KiKi