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settlement figure can not work out

billymuse
billymuse Posts: 1 Newbie
in Loans
Hi my son has a loan for £4.000. Payments £125 per month for 48 months he took out in April and first payment due May 2012 he has paid 7 payment of £875 up until November 2012. He has a settlement figure of 5.208.71 less rebate 1.420.64 but still owns 3.787.87 ..IS THIS RIGHT ? PLEASE HELP THANKS

Comments

  • Garage_Flower
    Garage_Flower Posts: 30 Forumite
    Seems about right to me. Settlement figures give you a rebate of interest on the account not a refund. I'll link a settlement figure calculator below which should help you to work out roughly what will be due.

    http://www.financecalcs.co.uk/Calcs/Settlement.php
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    billymuse wrote: »
    Hi my son has a loan for £4.000. Payments £125 per month for 48 months he took out in April and first payment due May 2012 he has paid 7 payment of £875 up until November 2012. He has a settlement figure of 5.208.71 less rebate 1.420.64 but still owns 3.787.87 ..IS THIS RIGHT ? PLEASE HELP THANKS


    unfortunately, if one takes out loans around 24% APR then during the early months you are paying mainly interest and only a little off the capital.
  • Moneymash
    Moneymash Posts: 510 Forumite
    Part of the Furniture 100 Posts Combo Breaker Debt-free and Proud!
    That is a high APR, can he make larger monthly payments?
    Debt-Free day 30th September 2014
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