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Loan balance higher that when I took it out!

Hi all, apologies if this has been covered elsewhere. I have just received my first yearly statement for a Sainsburys loan that I took out last April for £8,500. The statement shows the opening balance as £9604.80! Am I being thick? I'm totally confused, can anyone advise please why the opening balance is more than a thousand pounds more than the amount I requested?

Thanking you all in advance

Comments

  • glentoran99
    glentoran99 Posts: 5,825 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    Interest, its showing the total amount to be repaid, if you paid it off now that amount would be less
  • Sncjw
    Sncjw Posts: 3,596 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    HAve you been paying it off?
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment paused to pay off cc 

    Starting balance £66,565.45

    Current balance £55,819

    Cc debt free.

  • When you applied for the loan, they advised you that you would be paying interest at X% over the term of the loan and that the total amount to be repaid would be the cash advance bit plus that chunk of interest.


    Every time you pay something off the loan, it is deducted off the total owed (including the interest). It's all standard stuff.
    174 BPM >> CC Balance (0%) -£3,565.99 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£19,803.74 - Target DFD Nov 2020
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