iPhone 5 through financing (Barclays)

glasgowm148

Here is the agreemnent from Barclays - Noted I also took this out on credit to build up my credit rating! Growing up between Belgium, America, etc I have 0 credit. The only thing I have on my credit rating now is my iPhone 4 contract with o2 I took out 2 years ago. When I went to apply for a mortgage 2 years ago I was having to pay a higher interest rate because I have no credit (I just buy everything in cash so I don't have to pay interest)



Early repayment
At any time before the final Repayment is due, you have a right to pay off some or all that
you owe us. You must give us verbal or written notice that you wish to make earlier
repayment and, in the case of full settlement, must tell us the date on which you wish to
settle. You can contact us at the address shown for us above or on 0844 811 9000. For
full settlement we will send you a statement setting out the amount that you owe. When
you make a partial payment, we will firstly use it to pay any arrears, overdue interest or
charges. We will then adjust the interest you have to pay in accordance with clause 8.1
and the balance of the early repayment will be applied to reduce the final Repayment and
then reduce the term of the agreement. You may ask us to send you a statement.

and here's clause 8.1
8.1 If you choose to settle this agreement in full then we will charge
you the interest which has already fallen due as at the date of
settlement plus a further amount of not more than 59 days interest.
If you choose to make a partial payment then we will charge you
not more than 59 days interest on the amount you pay to us. In
each case the interest will be charged at the current Interest Rate
then applying

BugsyBrowne

iPhone's are the best phones as are apple iMacs etc they are in a different league and I know if a PC windows turned up in my house it would go straight in the bin.
Completely irrelevant my post but thought I would just say how sh*t PC's are compared to the mighty Mac.

spadoosh

BugsyBrowne wrote: »

iPhone's are the best phones as are apple iMacs etc they are in a different league and I know if a PC windows turned up in my house it would go straight in the bin.
Completely irrelevant my post but thought I would just say how sh*t PC's are compared to the mighty Mac.

That really does depends on what you use it for doesnt it!?

As a gaming machine they compare pretty poorly with pc's.

pheonixrising21

glasgowm148 wrote: »

Here is the agreemnent from Barclays - Noted I also took this out on credit to build up my credit rating! Growing up between Belgium, America, etc I have 0 credit. The only thing I have on my credit rating now is my iPhone 4 contract with o2 I took out 2 years ago. When I went to apply for a mortgage 2 years ago I was having to pay a higher interest rate because I have no credit (I just buy everything in cash so I don't have to pay interest)



Early repayment
At any time before the final Repayment is due, you have a right to pay off some or all that
you owe us. You must give us verbal or written notice that you wish to make earlier
repayment and, in the case of full settlement, must tell us the date on which you wish to
settle. You can contact us at the address shown for us above or on 0844 811 9000. For
full settlement we will send you a statement setting out the amount that you owe. When
you make a partial payment, we will firstly use it to pay any arrears, overdue interest or
charges. We will then adjust the interest you have to pay in accordance with clause 8.1
and the balance of the early repayment will be applied to reduce the final Repayment and
then reduce the term of the agreement. You may ask us to send you a statement.

and here's clause 8.1
8.1 If you choose to settle this agreement in full then we will charge
you the interest which has already fallen due as at the date of
settlement plus a further amount of not more than 59 days interest.
If you choose to make a partial payment then we will charge you
not more than 59 days interest on the amount you pay to us. In
each case the interest will be charged at the current Interest Rate
then applying

looks like you had to answer your own question in the end, OP after the thread was hijacked by the "why spend so much on a phone", "don't get a loan, save instead" and "iphones are useless" people.

I'm probably going to get some stick for this, but here goes...

The OP did not ask for advice on whether he should have bought the iphone or gone for an Android phone, he did not ask whether he should have taken a loan or not for the phone. He asked for advice on whether he could pay part of his loan off early or not and if this was a good idea or not. He had already decided on the phone and was comfortable with the cost (including the interest). The only thing that should have been mentioned to him about the purchase should have been if someone knew a place to get the same product on the same re-payment plan for cheaper then he paid, that's all. Even then, its probably too late as its already a done deal!

Its the same when people come on here and ask for advice on whether to buy a new car on HP or PCP finance. Usually the first advice is: buy a cheaper car and then save for the one you want over the next three (or whatever) years. They say, if you can afford the £250 a month in finance, why not put that in a savings account each month and buy your car in three years when you have the cash to buy it out right. In the mean time take the £1000 you had as a deposit and buy a banger to last you till then. It will work out cheaper and you will still get the car that you want.

It doesn't work out cheaper at all. The £1000 car will probably not last you the full three years. You would probably need two or three bangers while you save up, or at least have a load of maintenance costs to make it last the three years. I know you can get some good runners that are a bit older and cheaper, but its a fact that older cars are less reliable and also not as safe (a fact that is rarely mentioned and is unquantifyable in terms of cost, especially to a family). Also, I know that new cars are not flawless and some do go wrong, but they have a warrenty attached to them, so no maintenance costs with them. You still have to put away the savings each month, so on a monthly basis you are no better off with the old banger. In fact, you are probably worse off each month as the new car would probably save you money on fuel. I know for a fact that my 2 yr old Megane 1.5 diesel is more efficient than any Megane diesel with a similar sized engine I could have bought for £1000! I know that if you save for the car you still have access to the money, but the best savings accounts out there lock the cash away and have loss of interest penalties for withdrawing.

Then there is the fact if everyone suddenly started thinking like this, the new and nearly new car market would collapse overnight. Go to any dealership and ask what proportion of their business is done on finance and ask if they could survive without it! And I include in that the people who pay the dealer in cash but funded that with a privately sourced loan.

I've used the car market as an example to illustrate my rant, but this could be applied to almost any market where alot of credit is available, albeit with differing timescales. To bring it slightly back to topic, go to any mobile phone shop and ask what proportion of their phones are bought with a contract and what are bought without (not including PAYG). People on here would be saying that you should go and buy the cheapest phone available and the cheapest contract (SIM only) you need, then put the rest of the £46 iphone contract price away in a savings account until you can afford to buy that £600 phone outright. I bet not many of the mobile phone shop customers do that in reality!

I know from my signature that it doesn't look like I have any right to suggest someone doesn't give advice about not getting loans, but it seems on here that "don't get a loan" is the common answer to everything. Sometimes, this is the case. Sometimes, loans are better than paying cash, even if you have the cash available. For example, 0% on a car (or a fridge, oven, laptop, sofa, etc). Why would you want to give the seller all the money upfront when you can give it them slowly over 1,2,3 or more years at no extra cost, while all the time earning interest on that money? As I said, my signature shows a lot of debt, but I am reducing this (those figures are since March 2012). Also, I am only showing the type of debts I want to get rid of. I am never going to put on my car loan or mortgage on here as I consider these "good" debts. I am going to have my mortgage until its paid off (hopefully earlier than full term) and I envisage having a car loan for the foreseeable future (I like having a fairly new, safe, reliable, economical car). I will even have a CC debt forever as well, although once my current debt is paid off, my CC debt will be paid off each month in full. I bet none of the "never get a loan" people think twice about putting their weekly shopping on their credit card and then paying off in full when the bill comes!! - apart from the length of credit term and maybe interest, how is this any different from a car loan or a two year contract for an iphone?

I just wish people would stick to answering the question posed in a thread and not try and take some sort of moral high ground. Save that for the people who are looking for the smallest and most trivial technicality to avoid paying back a loan they took out and those who just downright have no intention of paying back a loan. Unless of course the poster asks for such advice!

Anyway, that's my rant over!

From what has been posted, it would seem that they will charge you 59 days worth of interest on the £300 you want to pay off early and then reduce the term of the loan accordingly, so about 12 months off the term of the loan. That will save you more than the 59 days interest they will charge.

spadoosh

pheonixrising21 wrote: »

[STRIKE]
looks like you had to answer your own question in the end, OP after the thread was hijacked by the "why spend so much on a phone", "don't get a loan, save instead" and "iphones are useless" people.

I'm probably going to get some stick for this, but here goes...

The OP did not ask for advice on whether he should have bought the iphone or gone for an Android phone, he did not ask whether he should have taken a loan or not for the phone. He asked for advice on whether he could pay part of his loan off early or not and if this was a good idea or not. He had already decided on the phone and was comfortable with the cost (including the interest). The only thing that should have been mentioned to him about the purchase should have been if someone knew a place to get the same product on the same re-payment plan for cheaper then he paid, that's all. Even then, its probably too late as its already a done deal!

Its the same when people come on here and ask for advice on whether to buy a new car on HP or PCP finance. Usually the first advice is: buy a cheaper car and then save for the one you want over the next three (or whatever) years. They say, if you can afford the £250 a month in finance, why not put that in a savings account each month and buy your car in three years when you have the cash to buy it out right. In the mean time take the £1000 you had as a deposit and buy a banger to last you till then. It will work out cheaper and you will still get the car that you want.

It doesn't work out cheaper at all. The £1000 car will probably not last you the full three years. You would probably need two or three bangers while you save up, or at least have a load of maintenance costs to make it last the three years. I know you can get some good runners that are a bit older and cheaper, but its a fact that older cars are less reliable and also not as safe (a fact that is rarely mentioned and is unquantifyable in terms of cost, especially to a family). Also, I know that new cars are not flawless and some do go wrong, but they have a warrenty attached to them, so no maintenance costs with them. You still have to put away the savings each month, so on a monthly basis you are no better off with the old banger. In fact, you are probably worse off each month as the new car would probably save you money on fuel. I know for a fact that my 2 yr old Megane 1.5 diesel is more efficient than any Megane diesel with a similar sized engine I could have bought for £1000! I know that if you save for the car you still have access to the money, but the best savings accounts out there lock the cash away and have loss of interest penalties for withdrawing.

Then there is the fact if everyone suddenly started thinking like this, the new and nearly new car market would collapse overnight. Go to any dealership and ask what proportion of their business is done on finance and ask if they could survive without it! And I include in that the people who pay the dealer in cash but funded that with a privately sourced loan.

I've used the car market as an example to illustrate my rant, but this could be applied to almost any market where alot of credit is available, albeit with differing timescales. To bring it slightly back to topic, go to any mobile phone shop and ask what proportion of their phones are bought with a contract and what are bought without (not including PAYG). People on here would be saying that you should go and buy the cheapest phone available and the cheapest contract (SIM only) you need, then put the rest of the £46 iphone contract price away in a savings account until you can afford to buy that £600 phone outright. I bet not many of the mobile phone shop customers do that in reality!

I know from my signature that it doesn't look like I have any right to suggest someone doesn't give advice about not getting loans, but it seems on here that "don't get a loan" is the common answer to everything. Sometimes, this is the case. Sometimes, loans are better than paying cash, even if you have the cash available. For example, 0% on a car (or a fridge, oven, laptop, sofa, etc). Why would you want to give the seller all the money upfront when you can give it them slowly over 1,2,3 or more years at no extra cost, while all the time earning interest on that money? As I said, my signature shows a lot of debt, but I am reducing this (those figures are since March 2012). Also, I am only showing the type of debts I want to get rid of. I am never going to put on my car loan or mortgage on here as I consider these "good" debts. I am going to have my mortgage until its paid off (hopefully earlier than full term) and I envisage having a car loan for the foreseeable future (I like having a fairly new, safe, reliable, economical car). I will even have a CC debt forever as well, although once my current debt is paid off, my CC debt will be paid off each month in full. I bet none of the "never get a loan" people think twice about putting their weekly shopping on their credit card and then paying off in full when the bill comes!! - apart from the length of credit term and maybe interest, how is this any different from a car loan or a two year contract for an iphone?

I just wish people would stick to answering the question posed in a thread and not try and take some sort of moral high ground. Save that for the people who are looking for the smallest and most trivial technicality to avoid paying back a loan they took out and those who just downright have no intention of paying back a loan. Unless of course the poster asks for such advice!

Anyway, that's my rant over!
[/STRIKE]
From what has been posted, it would seem that they will charge you 59 days worth of interest on the £300 you want to pay off early and then reduce the term of the loan accordingly, so about 12 months off the term of the loan. That will save you more than the 59 days interest they will charge.

Talking about being of topic, ive edited your post for you.

pheonixrising21

spadoosh wrote: »

Talking about being of topic, ive edited your post for you.

Thanks for that! I was well aware of the irony as I typed it. Would you mind doing the same for all other off topic posts on this site? Including this one if you like

Dex

Couldn't agree more pheonixrising21 I was reading this thread getting more and more irritated, this is supposed to be a place for advice not judgement. Answer the question and keep your off topic opinions to yourself!

OP as previously sadi you've answered your own question, I'd give Barclays a call and get them to confirm how things would be affected including amounts.

Oh and enjoy your phone!

spadoosh

pheonixrising21 wrote: »

Thanks for that! I was well aware of the irony as I typed it. Would you mind doing the same for all other off topic posts on this site? Including this one if you like

Sorry had to be done, it just looked like you put soo much time and effort into it.

And on the site?!:eek: MSE would lose 99% of its posts! And all of the funny ones!

The moderators can't even do that no matter how much they want to!

marvin

spadoosh wrote: »

Talking about being of topic, ive edited your post for you.

If it is "of" topic then surely it is pertinent to the subject unless of course it is "off" topic, as this one is and your quoted post is.

Missing the f out of off makes such a big difference to meanings just as missing the l out of public does, would you do that?

Public bathing areas would become? Would you want to swim in such a labelled area?

(BTW not being serious just being devilish)

pheonixrising21

spadoosh wrote: »

Sorry had to be done, it just looked like you put soo much time and effort into it.

And on the site?!:eek: MSE would lose 99% of its posts! And all of the funny ones!

The moderators can't even do that no matter how much they want to!

Yeah, I did put time and effort in, probably too much!

Anyway, to the OP, when you call Barclays to make the payment, ask them how they will charge you in interest to make the payment and when its made, make sure they send you a new payment plan showing your new final payment date.