Amigo Loans help please

Clive_Woody

Sometimes the truth hurts, it's not trolling it's reminding you of what you signed up to when you borrowed the money then seem unhappy about afterwards.

You need to address your cycle of borrowing beyond your means. It's worked for you this time but next time you may not be so fortunate.

Marktheshark

If you are paying 25%, you are not even paying the interest off which is 49.9%
That means out of every £100 you pay, 49% is interest and £51 pays the loan back.
The Amount you owe is going to escalate each month .
They will allow this to happen as they have a Guarantor and will make more money by letting it roll up.
I would not be so quick to celebrate, they have not really done you a favour here and your Guarantor is simply going to end up with a much bigger bill.

At very least look how you can meet the interest to stop it snowballing.
At 25% you will never pay it off.

SnooksNJ

Marktheshark wrote: »

If you are paying 25%, you are not even paying the interest off which is 49.9%
That means out of every £100 you pay, 49% is interest and £51 pays the loan back.
The Amount you owe is going to escalate each month .
They will allow this to happen as they have a Guarantor and will make more money by letting it roll up.
I would not be so quick to celebrate, they have not really done you a favour here and your Guarantor is simply going to end up with a much bigger bill.

At very least look how you can meet the interest to stop it snowballing.
At 25% you will never pay it off.

If were the Guarantor I would be freaking out right now that I am going to be responsible for with this debt at 50% interest with excellent credit because my friend is too busy calling people losers on an internet forum to generate some money to pay this off.

Marktheshark

SnooksNJ wrote: »

If were the Guarantor I would be freaking out right now that I am going to be responsible for with this debt at 50% interest with excellent credit because my friend is too busy calling people losers on an internet forum to generate some money to pay this off.

Absolutely no doubt the Guarantor is in for a shock of a lifetime.
The OP thinks paying 25% of a 49% apr loan is "sorting it out"


The Guarantor will be in this up to their neck.

verityboo

One gets the impression the OP does not understand how interest is calculated and added daily.
This means if you pay off more than the agreed amount you stop paying interest on the extra bit and the total payable will reduce slightly.
The opposite is also true of course (as in the OP's case)
Perhaps they think the the interest was added on the day they got the loan and every penny they pay reduces the amount owed

selkirk44

Pixie5740 wrote: »

Have you even had the decency to let the guarantor know that you are about to start defaulting on this loan?
you obviously already have a pre-judged answer to this question......... so i'll let you keeping thinking it if it makes you happy

selkirk44

verityboo wrote: »

One gets the impression the OP does not understand how interest is calculated and added daily.
This means if you pay off more than the agreed amount you stop paying interest on the extra bit and the total payable will reduce slightly.
The opposite is also true of course (as in the OP's case)
Perhaps they think the the interest was added on the day they got the loan and every penny they pay reduces the amount owed

one clearly doesn't understand interest capped.......... it means the interest will not exceed the agreed interest amount when the loan was taken out............. apology accepted in advance

CalumHeath

selkirk44 wrote: »

... apology excepted in advance

*accepted.

You're welcome.

Caz3121

selkirk44 wrote: »

one clearly doesn't understand interest capped.......... it means the interest will not exceed the agreed interest amount when the loan was taken out............. apology accepted in advance

I understood capped interest referred to the rate
borrow £2,000 over 24 months at 49% and you will pay £1,175 in interest over the period
spread that same £2,000 at the same 49% over 240 months and the amount of interest would be £17,601
are you implying that, in the scenario above you could spend 20 years paying back a 2 year loan and still be only due to pay the original £1,175 interest?...can you provide a link to this?

verityboo

selkirk44 wrote: »

one clearly doesn't understand interest capped.......... it means the interest will not exceed the agreed interest amount when the loan was taken out............. apology accepted in advance

Capped at what rate?

Have you informed the Guarantor? You're the one who posted on this site asking for guidance but seem unhappy to accept the view of others - strange!