Egg loan repayments

BladesLad

again...!:mad:

Ive currently got a loan with the aforementioned, paying a set amount of £250 per month...however..!

I was under the impression when first taking out the loan that each month, £250 would be deducted from the running total, ie the 7.9% interest was added when the loan commenced?

At the moment, in effect, only £200 is being deducted from the total running amount?

Anybody advise as to whether i dreamt what the associate said?

happyformonths

Hi,

I don't think I'm going to be much use, but I thought you should at least have a reply

I have an Egg loan too, and my repayment doesn't reduce the entire balance by the whole amount of the repayment (if you see what I mean) either, so I assume they are simply adding interest each month.

Of course without a proper breakdown of interest charges etc on the "statement" they provide you with online, how would you know? But that's another issue.

I don't think they front-load the interest, otherwise the amount I said I wanted to borrow (say £10,000) would have then appeared online as, what, £15,638 or something, i.e. the amount I borrowed plus the whole amount of the interest over the term. Instead it just said £10,000, so my repayment each month is being hit by the monthly interest first before it can reduce the running balance at all.

Does this make sense? If you're still confused, why not just give them a ring? I always find them quite helpful at Egg, even if they are total b*******s when it comes to their credit card rates (but that's another issue again!).

HFM

Jinos

When you view your account online is the total amout owing more than you actually borrowed?!

I also have an Egg loan and it is flexible, with interest being added monthly. Therefore of my monthly repayment of £240, last month approximately £198 paid off the capital and the rest was the interest for that month. It's good the interest isn't added 'up front' as any extra payments you make reduce the term and the interest paid. Next month my interest will be a bit less than this month's and therefore a bit more will be paid off the capital owed.

They've always been pretty quick replying to any secure messages I send them about my account so maybe just email them if you're confused about where your repayments are going?

Cheers!
J

girltuesday_2

Egg calculate interest daily (or so they told me when they took out my Egg loan). It means you can overpay and save on interest.