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Interest on loans

Shaun5
Shaun5 Posts: 1 Newbie
in Loans
Last year I took out a Tesco loan for 25k. My yearly statement shows in now owe 31k due to the whole 8k interest being added upfront. Can this be correct ?

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No. The interest isn't added up front.

    The figure you are seeing shows what you will pay if the loan runs to term. If you settle early, you will pay much less and save on the interest.
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