The "Pay ALL your debt off by Xmas 2012" challenge - PART 2!!!

HelenPie

Superheavy wrote: »

Someone did once tell me that I don't seem like I work in a bank because I'm not at all scary...

Basically, when you pay off the loan any interest that you haven't already paid gets refunded, so for example -

5k outstanding, plus 1k of interest (if the loan was to run to term). So the total amount to repay would be 5k.

New loan would then be taken out for 5k (this is where it may be worth comparing interest rates to see if the maths works out.) If the rate is the same, then the new loan will be calculated, and as long as it is over the same term as the number of repayments you have left, then it will calculate the interest to the same amount. So with the same example the new loan would be the 5k, plus 1k interest.

So what I mean to say is that you wouldn't pay the interest on your loan twice.

Absolutely right. If the term is not longer/the interest rate not higher then the interest will be the same or less. The only reason the interest element of your repayments is higher at the start of a loan is purely the relationship between interest rate/balance/term. Effectively, the calculation is done each month as if it were the start of the loan again but with a lower balance and 1 month less to run, IYSWIM. That means that moving it elsewhere is exactly the same as leaving it be if your terms are the same (ignoring any exit costs). Hope that doesn't make it more confusing! Explanations aren't my strong suit

mf0u1098

Superheavy wrote: »

Someone did once tell me that I don't seem like I work in a bank because I'm not at all scary...

Basically, when you pay off the loan any interest that you haven't already paid gets refunded, so for example -

5k outstanding, plus 1k of interest (if the loan was to run to term). So the total amount to repay would be 5k.

New loan would then be taken out for 5k (this is where it may be worth comparing interest rates to see if the maths works out.) If the rate is the same, then the new loan will be calculated, and as long as it is over the same term as the number of repayments you have left, then it will calculate the interest to the same amount. So with the same example the new loan would be the 5k, plus 1k interest.

So what I mean to say is that you wouldn't pay the interest on your loan twice.

HelenPie wrote: »

Absolutely right. If the term is not longer/the interest rate not higher then the interest will be the same or less. The only reason the interest element of your repayments is higher at the start of a loan is purely the relationship between interest rate/balance/term. Effectively, the calculation is done each month as if it were the start of the loan again but with a lower balance and 1 month less to run, IYSWIM. That means that moving it elsewhere is exactly the same as leaving it be if your terms are the same (ignoring any exit costs). Hope that doesn't make it more confusing! Explanations aren't my strong suit

Aaah I see, wish I'd known this years ago! (I took this loan out in 2006 for 8yrs...) I could have gotten rid of HBSC a long time ago!!! (Sorry Superheavy...;))

I'll have to look at the interest rates then and might even go and speak to someone in branch (SHOCK HORROR! :eek:) and find out if it would be better for me to do this. That way, I could potentially overpay for the next 6+months and reduce the interest each time rather than having to wait until it is saved up in full.

You guys are absolutely chuffin awesome! :A Have I told you that lately... :rotfl:

eddi

mf0u1098 wrote: »

Speak to them nicely?! Me and HBSC have a long and unfriendly relationship where I have told them on numerous occasions the great delight I would take in closing my account at the first possible opportunity as I hate the blood sucking crettins for always kicking me when I'm down and being utterly imcompetent!!!

HelenPie wrote: »

OK, I had no idea it was HSBC! They are horrid. They used to call me up and have me in tears many a day after I graduated. Horrid horrid people.

I have felt like this more often than not about the Halif@x. I will give them their due in that they appear to be VASTLY improved of late but my god they used to be vile One of their call centre folks made me cry and put the phone down on me once when I was at my lowest ebb.

The witch I saw in branch when I went in to pay off my credit card of about £4K a few years ago when my Grandpa left me some money said (in the most condescending manner possible like I was a child) "Oh well done, how have you managed to do this?". So I loudly announced "My Grandpa died thanks but it's not really any of your business how I've managed it". That shut her up, she didn't know what to say. He would have found that quite amusing god love him

Jakes mum ... well done with your loan progress and Jemma well done on your 2.5lbs :T ..... and a late EDIT: Well done for the jeans-loosening inch loss Kerri

Superheavy

Since I left uni my two main jobs have been working as a journalist and then in a bank, so you could say I've developed a thick skin, cause neither occupation seems to be particularly popular....

mf0u1098

I feel like you guys have hit me over the head with a baseball bat!!! I am sooooo grateful to you for telling me about the new loans. I had absolutely no idea they'd changed the terms. I'm going to go into a branch as I hate the phone service and see if they can help as my loan is on 7.9% APR but I've just looked on their website and it gives an indicative figure of 6.2%! I just want to give you both a MASSIVE HUG!!!!!! Thank you sooooo much xxx


ETA: InsertWittyName and Pedro haven't got a cat in hells chance of catching me now :rotfl::rotfl::rotfl:

*skips around the office singing to myself getting very strange looks*

KS2008

Hello all

Jemma - thank you for updating the totals!

Just checked mine and I have paid 11.76% - WHOOP! :T:T:T
It is very exciting and motivating stuff!

Oh, and AMAZING total for January - well done everyone :beer:

his_missus

Afternoon all!

Cripes! I miss a day on here and there's pages and pages to catch up on:eek:. End of my lunch break too so will have to continue tonight.:p

Quick update, my loan repayment's gone out today so my new total is...

#012 £1525/£6583 23%:j almost a quarter of the way there:)

kerri_dfw

Gahhhh I have to go to the Birmingham office on my first day on the 13th That's in Blythe Valley Park and I've never been before. I soooo didn't want a 2hr journey on my first day, oh well.

recurrent-ostrich

kerri_dfw wrote: »

I'm one of those that everyone hates, can never put weight on.

:rotfl:Make the most of it then, chicken, 'cause you won't stay like it. I was the same, dead skinny, 5 foot 10 and never a dot over 9 stone. Didn't matter what I ate or drank, weight stayed the same.


UNTIL I HAD BABIES. I swear that the skinny gene lives near your fou-fou and gets pushed out with the first baby. :rotfl:Since then my metabolism (or something) is completely bu**ered up and now I only have to look at a cake to put on half a stone. :mad:

mf0u1098

kerri_dfw wrote: »

Gahhhh I have to go to the Birmingham office on my first day on the 13th That's in Blythe Valley Park and I've never been before. I soooo didn't want a 2hr journey on my first day, oh well.

That's a bit carp! And besides, it means you won't be on here as much... xxx