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Help me please on loan agreement
Hello can anyone help me please had a loan took out in may 2017 for £4000 and pay back £8,680.14
Pay monthly 482.23
Apr 78%
Period of loan 18 months
I have made 7 payments never late
And today's settlement figure is 2964.46
And I had a settlement figure in October for 3148.90
I am questioning this figure and have asked for a breakdown it seems to high considering i payed three payments between the two settlement figures and only £184.44 was the difference I have used a calculator online and that says it should be 2105.96 but states it could be higher due to other fees ? Please help way out of my depth
Pay monthly 482.23
Apr 78%
Period of loan 18 months
I have made 7 payments never late
And today's settlement figure is 2964.46
And I had a settlement figure in October for 3148.90
I am questioning this figure and have asked for a breakdown it seems to high considering i payed three payments between the two settlement figures and only £184.44 was the difference I have used a calculator online and that says it should be 2105.96 but states it could be higher due to other fees ? Please help way out of my depth
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Comments
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Hello can anyone help me please had a loan took out in may 2017 for £4000 and pay back £8,680.14
Pay monthly 482.23
Apr 78%
Period of loan 18 months
I have made 7 payments never late
And today's settlement figure is 2964.46
And I had a settlement figure in October for 3148.90
I am questioning this figure and have asked for a breakdown it seems to high considering i payed three payments between the two settlement figures and only £184.44 was the difference I have used a calculator online and that says it should be 2105.96 but states it could be higher due to other fees ? Please help way out of my depth
What other fees/interest do the T&C of your loan say you will be liable for if you repay the loan early?0 -
With any sub prime loan there may be an early repayment charge added.
You need to check the T’s & C’s of your credit agreement to verify.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Likely front-loaded interest... The interest rebate will become less the further you are in the agreement. Your first half of the term's payments will likely be paying the interest off, only a small amount against the capital.
In short - pay it off as soon as you can.0 -
It's not front loaded. Interest is simply higher at the start of the term.0
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Yeah, the interest is higher initially because the balance is.
Settlement figure will include an extra 58 days interest and any other fees you agreed to0 -
Sounds correct. Take out a mortgage and in the first few years 3/4 of your monthly payments go to paying the interest. I'm 8 years into mine and even now its only roughly 50/50 so I repay £5000 a year and the amount owed only drops by £2500.
The loan is working the same way.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
And with an apr of 78% its not surprising.0
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