Need help with Barclays Partner Finance loan.

OB91achilles

In need of information on my loan as I feel like I'm being ripped off. I took out a loan from the above mentioned and have tried to settle the loan two years in out of 4. They have charged me the majority of the interest in the first two years and now what interest I owe is minimal. Can they do that without stating it in the contract?
Please advise

[Deleted User]

That's how loans work. You owe more in the beginning so you're charged more interest.

You'd be really annoyed if you only owed £30 in the last month and got charged £50 interest.

OB91achilles

Yeah it's ok saying that that's how they work but shouldn't they state that in the agreement? If I'm paying the load within two years why should I be paying more than two years interest?

[Deleted User]

You're not paying more than two years interest and it is stated in the agreement.

You pay much more than 50% of the interest in the first two years, because the capital is so much higher.

You will also have the two months early settlement interest to pay. However, paying if off early saves you in the long run.

Nearlyold

Interest is charged on the declining balance of the loan, so when you owe more, you pay more interest, you obviously owe more at the start of the loan than you do at the end, so naturally you'll pay more interest in the first two years of the loan than in the last two years of the loan. Google Guardian Loan Calculator and put your loan figures in and you'll see how this works.

As to why they don't put a specific statement in the agreement to forestall your misunderstanding, the agreement will explain how interest is charged with examples of early settlement figures, you can't really expect the lender to think of every conceivable misunderstanding a borrower might have, then put a specific statement in the loan to cover it.