Loan Balance going up not down!

debtfreein2008

Hi

I took out quite a high interest loan 15 months ago and have been paying monthly. I can now payoff but the balance is only £200 less than the amount I borrowed! Also I got a settlement at the beginning of year and it was £100 less than it is now! I just don't understand.

I borrowed 7k, have paid 5k and apparently owe 6.8k!

Please no comment about how stupid I am as I needed a loan to get me out of a difficult situation and my credit wasn't good enough for anything else. Circumstances mean I now can settle.

thriftylass

debtfreein2008 wrote: »

Hi

I took out quite a high interest loan 15 months ago and have been paying monthly. I can now payoff but the balance is only £200 less than the amount I borrowed! Also I got a settlement at the beginning of year and it was £100 less than it is now! I just don't understand.

I borrowed 7k, have paid 5k and apparently owe 6.8k!

Please no comment about how stupid I am as I needed a loan to get me out of a difficult situation and my credit wasn't good enough for anything else. Circumstances mean I now can settle.

There is your answer in bold. The high interest. How high was it? How much of your monthly payment just covered interest? Glad you can now settle it.

PeacefulWaters

Big loan. Long term. High interest.

Your capital reduces very slowly at the start of the term.

It's normal.

CLAPTON

debtfreein2008 wrote: »

Hi

I took out quite a high interest loan 15 months ago and have been paying monthly. I can now payoff but the balance is only £200 less than the amount I borrowed! Also I got a settlement at the beginning of year and it was £100 less than it is now! I just don't understand.

I borrowed 7k, have paid 5k and apparently owe 6.8k!

Please no comment about how stupid I am as I needed a loan to get me out of a difficult situation and my credit wasn't good enough for anything else. Circumstances mean I now can settle.

the facts about the loan would be useful

debtfreein2008

Hi

Loan 7k x 48 months, started July 2015 and paying £358 pcm.

Thanks

Gaz83

What was the APR?

PeacefulWaters

debtfreein2008 wrote: »

Hi

Loan 7k x 48 months, started July 2015 and paying £358 pcm.

Thanks

The interest rate would be awfully useful old chap.

You've agreed to repay in excess of £17,000 over four years. To settle up now for less than £12,000 sounds like a result.

leespot

Looks to be about 54% APR on those repayments figures / totals?? :eek:

Caz3121

looks like your early settlement figure includes a charge of 2 months interest...is that correct compared to your agreement?

foxy-stoat

The figures sound about right, good job you can clear it now and put it down to experience.

For your information, on month 1 you paid back £43 off the capital with your £358, month 2 was about £45 etc etc.