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Barclay Bird, new girl on the block.

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Comments

  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    Part of the Furniture
    Barclay_Bird wrote:
    Currently if you pay in nothing happens, apart from it is repaid quicker and less interest is calculated. That is a loop hole. I can't promise it wont be closed at some point :(

    BB

    Are you 100% sure that Barclays loans do not use rule of 78?
  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    Part of the Furniture
    Al_Mac wrote:
    She did say loop hole. What is rule 78?

    Lots of loans have this, more of your monthly payment goes on interest at the beginning of the loan and as your repay the interest part of the monthly payment gets smaller. If Barclays do this and you are quite a way into your loan term there may be a neglible benefit in making extra payments.
  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    Part of the Furniture
    Al_Mac wrote:
    Didn't know that was a rule, just thought that was how loans worked.

    It isn't a specific rule or law as such, it is just named rule of 78 not sure why!
    As I mentioned I just wonder if it would be of much benefit to anyone to make extra repayments if Barclays calculate like this. I know some companies like Egg Loans don't do this, and they encourage you to make extra repayments.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    M_Thomson wrote:
    ...it is just named rule of 78 not sure why!
    The rule of 78 explained (by our very own Mr Lewis).
  • Barclay_Bird
    Barclay_Bird Posts: 34 Forumite
    Sorry guys, I didn't know about this rule, not sure I understand it.

    I do know for a fact that people pay money off their loans, which causes them to finish early and that sometimes they go into credit, which causes problems in the system. So I just assumed you paid less.

    If I ever get asked another question, I'll try not to assume and if I do, I'll say.

    Sorry again

    BB xx
    Barclay Bird, here for your questions to the best of my ability :D
  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    chesky369 wrote:
    "Ethics is an interesting word on a site like this"

    Why?

    .. sorry to ask again BB, but...... why? Is there something about the site you consider unethical?
  • Barclay_Bird
    Barclay_Bird Posts: 34 Forumite
    ajaxgeezer wrote:
    .. sorry to ask again BB, but...... why? Is there something about the site you consider unethical?

    There are things that are "encouraged" that I do not think are right. I'm not prepared to post them, as I didn't come here to argue, I came to help.

    BB
    Barclay Bird, here for your questions to the best of my ability :D
  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    Fair enough BB. :beer:
This discussion has been closed.
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