Early repayment question

Fiveby5

Hi all, I really do need some advice.

I've bad credit history and needed to take a high interest loan out with 118118Money, I borrowed £1000 over 24 months repaying £78.76 per month. I repayed 9 payments which is around £700. I then was in a position to pay it off as it was such a high rate.

My question is, was the settlement figure of £930.45 correct? It just seems ridiculously high considering the amount I paid to them?

Any help would be great, thanks

Maria

Nearlyold

About right I'm afraid, see table below from the Guardian loan calculator with figures pretty close to yours at 70% APR. The balance after 9 payments plus up to 58 days interest is around the same as yours ie very high. Sorry can't get the figures to line up properly but hope you can follow it. You'll see that the first monthly payment only reduces your debt by £20 the rest of your payment is interest of £58

Pmt# Bal ---- Int---- Prin---- Paymnt
1 1,000.00 58.33 20.12 78.45
2 979.88 57.16 21.30 78.45
3 958.58 55.92 22.54 78.45
4 936.04 54.60 23.85 78.45
5 912.19 53.21 25.25 78.45
6 886.94 51.74 26.72 78.45
7 860.23 50.18 28.28 78.45
8 831.95 48.53 29.93 78.45
9 802.02 46.78 31.67 78.45
10 770.35 44.94 33.52 78.45
11 736.83 42.98 35.47 78.45
12 701.36 40.90 37.54 78.45
13 663.82 38.72 39.72 78.45
14 624.08 36.40 42.05 78.45
15 582.03 33.95 44.50 78.45
16 537.53 31.36 47.10 78.45
17 490.43 28.61 49.85 78.45
18 440.58 25.70 52.76 78.45
19 387.82 22.62 55.83 78.45
20 331.99 19.37 59.09 78.45
21 272.89 15.92 62.54 78.45
22 210.36 12.27 66.18 78.45
23 144.18 8.41 70.05 78.45
24 74.13 4.32 74.13 78.45

Fiveby5

Thank you Nearlyold that clears it up. I've learned my lesson, time to continue to improve my score.

Thanks again!

[Deleted User]

lumani12 wrote: »

If you repay your mortgage early or make an overpayment that's more than your overpayment allowance, an Early Repayment Charge (ERC) may be payable.

User reported for Indian double glazing spam.

Make a change from Rochdale Kitchens I guess.