ladder loans help

Monkeyballs

helpupthecreek wrote: »

Hiya

I thought the end balance would be 2200 not 3300. stepchange's estimated balance for ladder loans is 3162.95 when I rang ladder loans they said it was for even more! Thats why im waiting for the email statement from them to check. The original loan was for 1300 over 12 months which just shows whyI shouldn't be allowed within 10 feet of any money over a tenner, lol. Although I am trying my hardest to change

Hi again,

Thanks for the reply, I'm really sorry to hear about you're week like you I seem to find when things go wrong they go wrong en masse! I wish you all the best of luck.

I'm still not sure what you are speaking to Step Change about so I'm going to hazard a guess that you are trying to get a balance for the start of a DMP or similar repayment agreement.

Are you able to sign into your account online to see a balance and potentially a breakdown of charges? I've never used these guys so I don't know how they operate...

End of the day if an agreement is put in place regardless of the size of the debt then you will probably only wind up paying what you can afford and if it comes down to it and they pass the debt to a debt collection agency then it isn't the end of the world as DCA's are often easier to deal with.

Can I ask what the contact between you and them has been and likewise them to you? If you haven't started then it might be worthwhile keeping a journal of contacts with name, date, times and details - it may prove handy later, it may not but either way it will help you feel a little more in control of proceedings?

MB

jakjo

I am sorry to interupt on this thread but I took out a loan with ladder loans about 4 months ago. I have merrily paid a total of £500 and I settled today but only to find that after borrowing 1000 I settled 923. They banged on about Interest and
Principal which I don't see anywhere in the documentation I was sent. Is this right?

Tixy

jakjo wrote: »

I am sorry to interupt on this thread but I took out a loan with ladder loans about 4 months ago. I have merrily paid a total of £500 and I settled today but only to find that after borrowing 1000 I settled 923. They banged on about Interest and
Principal which I don't see anywhere in the documentation I was sent. Is this right?

The principal is the amount you borrowed.

For anyone to be able to help you would need to provide us with details of the loan.
How much borrowed and when,
What was the APR,
What payments have you made and when.

jakjo

I borrowed £1000 and agreement was signed on the 22/11/2013.

copied and pasted from contract:



Interest rate: 146.67% per annum (fixed)

Interest charges are calculated in advance on what will be the daily outstanding balance of the amount of credit on the assumption that you make each payment on its due date. Interest will be applied to your account at the date of the agreement.

APR: 299.00% per annum

I have made all direct debit payments from the beginning of December until beginning of this month of £118

jakjo

Sorry I meant 139

Gaz83

December £139
January £139
February £139
March £139
April £139

A total of £695

You said that you'd 'merrily paid a total of £500'. Your figures don't add up.

jakjo

OK so I was mistaken once I saw it on paper. I was just wondering why when I settled yesterday that I had to pay £923.00.

Thank you

Tixy

What was the original term of the loan intended to be? according to the paperwork (how many months).

Edit - just looked on their site and it looks like you borrowed £1000 over 18months.

Putting those details in to a quick, rough spreadsheet gives a balance after 5 payments of £892, so £923 looks about right

bigadaj

jakjo wrote: »

OK so I was mistaken once I saw it on paper. I was just wondering why when I settled yesterday that I had to pay £923.00.

Thank you

The clue is in the extract you quoted above, an apr of 300% means that you're paying back three times what you borrow if you borrow it over a year. That really is a horrendous interest rate, though some of it could of course be fixed charges.

In future make sure you understand what you are signing for on a loan agreement, there are plenty of calculators and ready reckoners on the Internet or you could simply post details and someone here can let you know.

iolanthe07

bigadaj wrote: »

The clue is in the extract you quoted above, an apr of 300% means that you're paying back three times what you borrow if you borrow it over a year. That really is a horrendous interest rate, though some of it could of course be fixed charges.

In future make sure you understand what you are signing for on a loan agreement, there are plenty of calculators and ready reckoners on the Internet or you could simply post details and someone here can let you know.

300% APR is mental - absolute usury. Why did you sign up to it?