Help needed with loan settlement figure!

frennick

Hi, hoping someone might be kind enough to help me out here. My husband is away and the finance company won't let me deal with the settlement, and I'm trying to budget for it but they won't tell me what it is!

The loan details are as follows:

Total cost of goods inc VAT £5040.00
Cash payment £1000
Amount of credit £4,040
Interest Charges £755.76
Acceptance Fee £199.00
VPP Fee £105.00
Total Charge for Credit £1059.76

36 monthly repayments of £141.66
We have made 14 payments so far.
The interest rate is 5.80%, APR 17.0%

If anyone can help, it would be greatly appreciated as each time I try to work it out, I get a different figure.

Thanks in advance to any maths bots out there!

DCFC79

Is there no way for your husband to call the finance co and give you access to speak to them.

frennick

No, he's in Afghanistan and I've only spoken to him twice in the past few weeks. Even if he did have time to call them, the time difference makes it virtually impossible. I thought perhaps someone with some financial knowledge might know a quick solution for working it out.

bargainbetty

You will need to look at the agreement and see what redemption penalties they may apply and interest rebates you qualify for too.

It's not a catch-all formula - you'd need specifics from the agreement. Does your husband have access to email at all? You could email him a letter to send over from his account, giving you authority to talk to them, or email them asking for a settlement figure.

iancrt

You seem more interested in preparing a budget to pay it off - the calculations you have done will probably suffice as a ball-park figure.
as a VERY rough guide - you will currently owe about £3000
BUT Settlement will be more, at least 1 months interest of about £30 added on. there will be probably be other fees or penalties for early settlement too, though not always.

This is calculated as fees paid off first while 0.9% a month added in interest to capital (total interest in my calc £759), interest added monthly on day of payment, not accounting for non-banking days.
However this is an annual interest rate of about 10.8%, not the quoted 5.8% - I cant work out what they have fiddled to quote at 5.8%

Without knowing your exact terms thats as close a GUESTIMATE as anyone could get

If you are not paying this off tomorrow...these number will change as follows:
Your next payment will consist of £116 principle and £25 interest. each month for the next 6 months £1 moves from interest to principle in each payment.

I stress this is all a ROUGH calculation. The only way to get the true figure is to talk to the lender once you have budgetted to be close enough to settle.