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Consumer Credit Act advice
howdoesitwork2013
Posts: 3 Newbie
in Motoring
hi all, I hoping that someone will be able to help me, I have an car on finance and I have many questions about the agreement that I would rather discuss on here rather then ask the company direct. First one is:
why is the interest paid first on my monthly repayments?
why is the interest paid first on my monthly repayments?
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Comments
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Why not?...howdoesitwork2013 wrote: »hi all, I hoping that someone will be able to help me, I have an car on finance and I have many questions about the agreement that I would rather discuss on here rather then ask the company direct. First one is:
why is the interest paid first on my monthly repayments?0 -
I'm not complaining, it's just that I have to explain why this is to someone else and I've tried reading the Act but am a bit stumped...0
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Because you pay interest on what you owe.
You have a month accruing interest, they apply it, then you make your payment.
You aren't paying all the interest on the loan first if that is what you mean0 -
I've heard that my interest is front loaded? what does that mean?0
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You pay the interest or the bulk of it 1st.
The old saying... The only thing that lasts forever on a car is the finance.
Now you know why they used to say that.Censorship Reigns Supreme in Troll City...0
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