Need a little help with an abbey national loan i have

ljp88

Hi All,

thanks for taking the time to read this and hopefully helping.

i currently have a loan with the abbey national. the APR is 19.9%. the loan amount is 7,957. and i am paying monthly repayments of 170. each month around 80 of this 170 is interest. how is this possible? if the APR is 19.9% should it be this high?

i am going to give them a call tomorrow but i just wondered if there was anyone here that could give me some advice.

thanks so much

CLAPTON

the yearly rate of interest for 7,957 at 19.9% = 1,583 per annum or 1,583/12 = 131 per month in interest

so your figure of 80 makes no sense.

Apples2

Depends how long you have been repaying your loan.

If you are right at the start then Clapton has given the figures. As the loan goes on, the Interest you are paying will decrease meaning you are paying more capital off each month.
At the end of the loan you will pay almost all capital on only a few pounds interest.