We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Paying finance off early?
numerouno1
Posts: 1 Newbie
Quick question guys.
Recently signed up to a finance deal for goods costing £665.15. I'm pretty sure that when I signed up I went for a ''Buy Now Pay in 12 Months'' deal which carries the ridiculously huge APR rate of 29% when selecting that option if you don't pay in that time-frame. I would have the money in 6 months latest so I'm not worried about that, I just needed said items RIGHT now for work. The other 36/48 month options carried the smaller 16% APR rate.
However my paperwork says ''Duration of the agreement 48 Months. Under this agreement you will pay 36 consecutive monthly payments of 34.27£ with 29% APR'', is this standard narrative on these agreements despite selecting the pay in full within 12 month option? I can't find anything directly reflecting the ''Buy Now Pay in 12 Months'' choice. I'm not great with Finance despite being a trainee accountant, LOL. Is the agreement basically pay their minor admin fees + the full balance (665£) with 12 months?
On the website it states on the 12 month deal (which I presume I'm under with a 29% APR rate as opposed to 16% for the 36/48 monthly deals)..
''If by the Deferred First Payment Date, you have paid to Hitachi Capital (UK) the amount of credit in full, you will not have to pay any interest but you will have to pay and administration fee of £29.''
So does that mean 665 + 29 in 12 months = sorted? I can still cancel btw, I'm pretty sure I'm right on this just the mention of the ridiculously huge APR rate worried me but I'm presuming that is just how it works on the paperwork.
EDIT : I've since been on the forum of the website I purchased the goods from and someone else had the same query and the consensus is that I'm right. The companies give you these deals for a 29£ admin fee on the chance you forget/don't pay in 12 months. Someone actually said
''I did this and it is easy and means you can earn interest on the money for 12 months which is significantly more than £29. Just pay it before the end of month 12 and you will be fine.''
Recently signed up to a finance deal for goods costing £665.15. I'm pretty sure that when I signed up I went for a ''Buy Now Pay in 12 Months'' deal which carries the ridiculously huge APR rate of 29% when selecting that option if you don't pay in that time-frame. I would have the money in 6 months latest so I'm not worried about that, I just needed said items RIGHT now for work. The other 36/48 month options carried the smaller 16% APR rate.
However my paperwork says ''Duration of the agreement 48 Months. Under this agreement you will pay 36 consecutive monthly payments of 34.27£ with 29% APR'', is this standard narrative on these agreements despite selecting the pay in full within 12 month option? I can't find anything directly reflecting the ''Buy Now Pay in 12 Months'' choice. I'm not great with Finance despite being a trainee accountant, LOL. Is the agreement basically pay their minor admin fees + the full balance (665£) with 12 months?
On the website it states on the 12 month deal (which I presume I'm under with a 29% APR rate as opposed to 16% for the 36/48 monthly deals)..
''If by the Deferred First Payment Date, you have paid to Hitachi Capital (UK) the amount of credit in full, you will not have to pay any interest but you will have to pay and administration fee of £29.''
So does that mean 665 + 29 in 12 months = sorted? I can still cancel btw, I'm pretty sure I'm right on this just the mention of the ridiculously huge APR rate worried me but I'm presuming that is just how it works on the paperwork.
EDIT : I've since been on the forum of the website I purchased the goods from and someone else had the same query and the consensus is that I'm right. The companies give you these deals for a 29£ admin fee on the chance you forget/don't pay in 12 months. Someone actually said
''I did this and it is easy and means you can earn interest on the money for 12 months which is significantly more than £29. Just pay it before the end of month 12 and you will be fine.''
0
This discussion has been closed.
Categories
- All Categories
- 347.1K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.4K Work, Benefits & Business
- 615.2K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards