Technical Question for you all!!

spurs501_2

Hi Everyones.

I'm in the process of working out EXACTLY what I owe my creditors and I have a question I need answering.

When you guys put in your signature the amount you owe do you include the intrest? By this I mean if you take out a £15,000 loan and you end up paying back £20,000, would you say you are in debt for 15 or 20 K ??

Likewise, with Credit Cards, if you have £10,000 balance this could end up costing you double, so what ampunt would you say you owe?

thecornflake

I wouldn't include the interest, because if I paid it all back now I wouldn't have to pay the interest. Plus the interest changes all the time, when rates change or when you pay some off the balance.

Dr_Hook

I think the difference is whether it's a fixed or variable rate debt. For example, all my debts are variable rate (credit cards and a flexible loan) so I usually just update with the current balances as shown on the last statement.

Interest is usually front loaded on fixed rate loans so I'd list the balance as the number of remaining payments x the monthly amount (e.g. 21 payments of £150 left to go = £3,150)

HTH

Snaggles

Hiya, it's completely up to you really, it's your sig! I haven't got a figure in mine at the moment, but when I did, I would just use the most recent settlement figure for my loan, because that is how much I would have to pay if I repaid it today. But others do it slightly differently. With credit cards, I would just use the most recent statement balance, but again, that's just personal preference.

Good luck with working it all out!

matthewking26

Hi, I include the interest on the loan on the signature, as the way things go that's the total amount I'll be paying. the loan was £8000 and with interest the repayments began with the total being £9600. The credit card is whatever it is at the time of writing, before or after interest is added.
And that way if I do pay it off early I'll feel as if I've paid more off!

CharliesAngel

All as per last statement apart from the loan which is fixed repayment including interest i.e five years at £142.10.... 29 payments to go!