Help me get this straight

noterms

Ok so I'm going to either get help here or go down in flames

Took out an amigo loan at 49.9% (yes i know)

Needed a car and cant get credit elsewhere due to history.

Initial loan £8000 cleared some debt also over 36 months payments £349 which is more than affordable as i just couldn't wait and save daft yes but hear me out.

I can put away an extra £500-700 per month whilst making these payments I've just worked it out that if i clear it within 16 months I'll be paying back £1800 in interest which is £10.74 per day.

Have i got my calculations wrong its been a long day.

Arleen

Monthly repayments£390.36
Total amount repayable £14,053.10APR 49.9%Total cost
of credit £6,053.10

Put that 700 extra into repaying this monstrosity right away, and find more money to overpay with.

You may find this calculator handy: https://www.themoneycalculator.com/loans/calculators/loan-overpayment-calculator/#!/dealfinder/loans/ as it does exactly what you are seeking.

noterms

Thank You

Question I'm not sure on since they calculate interest daily and still take the amount regardless of overpayment.

Is it better for me to manually make overpayments each month on their system or save that capital up and repay in a lump sum?

MallyGirl

unless you can gat more than 49.9% return on your savings - which you can't - I would say you should get whatever money you can to them ASAP

AlistairM

Is taking out a lower rate loan to pay off this loan possible?

Gaz83

noterms wrote: »

Thank You

Question I'm not sure on since they calculate interest daily and still take the amount regardless of overpayment.

Is it better for me to manually make overpayments each month on their system or save that capital up and repay in a lump sum?

The quicker you repay, the less interest they will pay.

foxy-stoat

AlistairM wrote: »

Is taking out a lower rate loan to pay off this loan possible?

Probably not seeing as the OP couldn't get credit anywhere else....they still wont be able to get credit anywhere else even more with this debt now.


Just overpay as much and as soon as you can, and hope you do not have a total loss claim on your car in the mean time.


Good luck

noterms

Why would a total loss have anything to do with my question?

but thanks for the answers none the less i'll continue to make overpayments (Yes i couldnt get credit elsewhere) But overpaying will mean i pay £1500 or less dependant on how quick i will pay it off due to overtime added.

I know it wasn't wise and yes i could of saved longer but it's going to work in my favour and shouldn't be too far off what i would get on the high street by the end of the term.

BenjaminClarke

Noterms, credit is for suckers anyway mate. Seriously, you are always better off without it.

noterms

I wont argue with you there but saving vs having it now in this family isn't something that happens. Don't get me wrong this is the only time i'll be doing this stupidity once its paid hopefully before the year is out then credit is going to be a moot point in this household.

Thanks for the advice all (Don't worry you wont hear any horror story of it not being paid and what i need to do next)

Shakin_Steve

noterms wrote: »

I wont argue with you there but saving vs having it now in this family isn't something that happens. Don't get me wrong this is the only time i'll be doing this stupidity once its paid hopefully before the year is out then credit is going to be a moot point in this household.

Thanks for the advice all (Don't worry you wont hear any horror story of it not being paid and what i need to do next)

It won't be a case of what you need to do next, it will be what your guarantor needs to do next.