barclayloan

stevemcc12

I took a barclayloan out for 20,000 2 years ago paying 327 a month over 10 years I have asked for a settlement figure and it came back at 18,400 how can this be possible when I have made 8000 pounds in payments surely 6600 is not interest can anyone help

Tixy

That seems an expensive loan - is the APR around 15%?

That settlement looks about right though based on the info given - you can put the figures in to an online loan calculator to see for yourself the split of interest & payments on a monthly basis - such as this one - http://www.theguardian.com/money/loan-repayment-calculator-interest-rates

Plugging in your numbers after 24months the capital balance is around £18000 and 2 months early settlement interest added on would take it to around £18,400

pvt

Agree with Tixy.

Look at it this way, you've had an average of about £19k on loan for 2 years at about 15% APR. That's well over £6k interest. Very little of your repayments in the early years is paying off the capital.

stevemcc12

Thanks for info its my own fault I thought if you paid it off you would get some of the interest back :mad:

[Deleted User]

You don't get any of the interest back, but you do save the interest you would have paid if you ran it to full term (all bar a couple of months worth).

CKhalvashi

stevemcc12 wrote: »

Thanks for info its my own fault I thought if you paid it off you would get some of the interest back :mad:

Unfortunately not.

You're paying more interest than you are the loan at the moment.

ViolaLass

stevemcc12 wrote: »

Thanks for info its my own fault I thought if you paid it off you would get some of the interest back :mad:

If you keep paying £327 a month, in total you will pay £39240. Paying £18000 now will therefore save you a lot of money.