Halifax loan... going up before it's coming down :/

rdchick

Hi guys,

So I have a loan with Halifax that I took out last year for £3500... currently the balance is £3582.27... HOW IS THIS POSSIBLE? I have paid £96 every month since September last year. I should have paid at least £500 off by now surely including 'normal sort of interest'?

Is my interest soooo high that it's not actually doing anything?!

What can I do? I can't get another loan / credit card for this amount as I don't earn enough and have a crappy credit rating anyway so they probably wouldn't touch me or give me an even worse interest rate...

I bank with Halifax too so bit unsure but think I've been stung...

monicamj

When I had a loan from Natwest the balance I was given included the interest for the whole term. I borrowed £3000 but my online account showed £4500 - or so owing, I can't quite remember the figure. So maybe you've nearly paid off your interest?

rdchick

Hmmm but yesterday the balance was £3505 today the money has been taken out of my account for the loan and now the balance is £3582 so where has the extra £77 come from

rdchick

just bumping this up as still rather confused

Cornish_piskie

Have you rung the Halifax or popped into a branch and asked them? That would seem a more logical way to get the info you need

rdchick

Think I will bite the bullet and call them thanks

smartiedriver_2

rdchick wrote: »

Hi guys,

So I have a loan with Halifax that I took out last year for £3500... currently the balance is £3582.27... HOW IS THIS POSSIBLE? I have paid £96 every month since September last year. I should have paid at least £500 off by now surely including 'normal sort of interest'?

Is my interest soooo high that it's not actually doing anything?!

What can I do? I can't get another loan / credit card for this amount as I don't earn enough and have a crappy credit rating anyway so they probably wouldn't touch me or give me an even worse interest rate...

I bank with Halifax too so bit unsure but think I've been stung...

If it's a personal loan (as opposed to a mortgage) then the interest on the amount you borrowed will be added to the total of the loan. Say your loan was £3,500 at 10% per year interest (for easy maths!). £350 a year interest, for say 5 years, is £1,750 which means from day one your loan would be £3,500 + £1,750 = £5,250. You then repay this each month and see the balance diminish.

If the loan is a flexible type loan, your loan statements will read more like a mortgage statement, where you see a credit to the loan account each month (your repayment) followed by a debit (the interest). Thus the balance will fluctuate more.

From your info., I suspect it is the former. If you wish to repay, you can ask for a redemption figure which will discount most of the interest, perhaps leaving one or two months' interest as a penalty. HSBC charges two months.

Hope that helps.

rdchick

currently on the phone.. the woman is finding out why it's gone up...

It's a unsecured personal loan and it appears I have paid absolutely nothing back yet but interest which is piling on and no way clearing the balance...

the woman on the phone just said it's interest that goes on every month... :eek: waiting to be put through to the loans dept....

Cornish_piskie

rdchick wrote: »

currently on the phone.. the woman is finding out why it's gone up...

It's a unsecured personal loan and it appears I have paid absolutely nothing back yet but interest which is piling on and no way clearing the balance...

the woman on the phone just said it's interest that goes on every month... :eek: waiting to be put through to the loans dept....

Ouch Hope they can sort out something better for you

Now I'm off to take some of my own advice and ring Halifax myself about my confooooooosing mortgage statement :rotfl:

rdchick

what an absolute swizz...

I HAVE BEEN SUCH A FOOL.

Basically last year I took out a loan to pay off my overdraft and MOT my boyfriends car (which I was also using at the time - long story about the boyfriend - now ex thankfully!) but christ knows what the APR was, I completely didn't know what that even meant I just wanted the money.

I didn't pay off my overdraft....

So called them and they say that my interest currently on my loan is £77 PER MONTH and 'will go down as the balance decreases' which means I am paying the grand total of £19 off of my debt every month. RIDICULOUS.

I have been such an idiot.

rdchick

Oh and it'll be AUGUST 2017 before it's all gone apparently... not happening... I'll save up the £3500 and pay it off in one go... thieving !!!!!!!!