Trying to pay off HP is HARD!

System

Deleted_User wrote: »

Interest will never be static, as the balance is reducing.

It will be if it was a flat interest rate and flat interest loans are the type car dealers most often use as it allows them to quote the interest rate as being effectively half what the APR is on a conventional reducing interest loan is in order to make the finance look better. On a loan with flat interest rate you pay the same amount of interest on the last payment that you paid on the first. The amount of interest paid a month never varies.

FleaMedia

yeah mine has been reducing by about £1-3 a month.
I rang back and got a new quote as to what my payments would be if i paid off £6750
This worked out at £6750 + £183 tomorrow as expected, then £50 next month to cover the final about of hire then £10 in 3 years time at the end of the contract. saves me around the £70 discrepancy i was confused about.

very minor victory, but i suppose it is better than nothing.

Sparx

You should be able to ask for a Declining Balance Statement - this will show every month the part capital and interest breakdown.

But yes to confirm as above, the settlement figure doesn't reduce by your exact monthly payment, due to the interest as it's declining so changes throughout. Early into the agreement the majority of your payment is going towards the interest.

cammyammy5335

`I feel for you.

One of the most depressing things about mortgages is seeing your first mortgage statement. Not even paid off a grand after nine months and nine payments of £250! It stings to start with but it'll swing the other way as time goes on.