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118 188 Money loan, cancellation

amneshia
amneshia Posts: 17 Forumite
I got approved for a loan on 118 118 money earlier today, the money hasn't appeared in my account yet. The more I wait, the more I think I have made a mistake. The loan is as follows:

Loan amount: £1000
Monthly repayments: £100.23
Loan duration: 24 months
Interest rate (fixed): 103.87 %
Total to repay: £2,405.52

I can easily afford the monthly repayment but it's just the though of paying £100 for 2 years.

What are my rights to cancel, and should I?
«13

Comments

  • marcarm
    marcarm Posts: 1,205 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I would, apart from the fact you are paying 1.5 times the amount of the loan in interest, it is for a relatively small amount.

    You don't say what the loan is for, is it not something that you can save for using that £100 a month?
  • amneshia
    amneshia Posts: 17 Forumite
    marcarm wrote: »
    I would, apart from the fact you are paying 1.5 times the amount of the loan in interest, it is for a relatively small amount.

    You don't say what the loan is for, is it not something that you can save for using that £100 a month?

    The loan is for a laptop I use for work as mine packed in yesterday and I thought instead of using all my money on my account I can take out a loan, buy a new laptop and it gives me time to sell my faulty one.
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you can afford to pay the monthly payments where is that money now ?

    You will be having to pay over a thousand of your hard earned money to pay a loan off.
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    What makes you think people will buy a faulty laptop?

    Committing yourself to £100 a month for two years to buy a £1,000 laptop is mental stuff.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    amneshia wrote: »
    The loan is for a laptop I use for work as mine packed in yesterday and I thought instead of using all my money on my account I can take out a loan, buy a new laptop and it gives me time to sell my faulty one.

    What's wrong with the faulty one ?
  • amneshia
    amneshia Posts: 17 Forumite
    Gaz83 wrote: »
    What makes you think people will buy a faulty laptop?

    Committing yourself to £100 a month for two years to buy a £1,000 laptop is mental stuff.

    I assumed I could pay the loan off early with the money I will be getting back from the laptop. Does it not work like that?
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    Is someone going to give you £1,000 for a broken laptop?
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    amneshia wrote: »
    I thought instead of using all my money on my account I can take out a loan

    This is wrong by a factor of about 103.87%.
  • marcarm
    marcarm Posts: 1,205 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    edited 1 March 2016 at 7:40PM
    I take it you are self employed, otherwise if it is for work then your employer should be providing you with one.

    If the laptop is faulty, it'll be worth hardly anything, certainly not enough to make a dent in the loan you are thinking of.

    Would it not be easier to use the £100 a month payment to repair your existing laptop? Or you said you don't want to use all the money on your account, so this means you have the money for a new laptop but don't want to use it?

    But would you rather pay an extra £1500 in interest, and at the end of the loan have an asset worth probably £2~300.
  • ThePants999
    ThePants999 Posts: 1,748 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I struggle to imagine a scenario in which I'd willingly sign up to pay 103.87% interest.
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