Amigo Loan - help - something wrong?

finezyjqa

I have a problem with the Amigo Loan Company. My husband is guarantor of the loan.
Our friend has deceived us and now we are paying his loan. The loan is on £10,000 for a 36 months. The monthly rate is £487,89 and we never missed this. Always paying. We are paying this from April 2017 and now on February 2018 is still £8900 to pay for Amigo Loans. The interest is very high - 49.9%. So after 3 years of the regular payment we never pay this - because daily interest is too high for normal repayment. This will be a spiral debt to all live. So what we can do? We paid now from start the loan April 2017 - £6838,46 but the loan has decreased on just £1100. Please help.

System

Nothing can be done. Your husband signed as a guarantor so if the person who got the loan doesn't pay then your husband is 100% liable for the loan. It would have actually been better if your husband had taken out a loan from a mainstream high street lender at a cheaper APR and got the friend to make the repayments, you'd end up in the same place because of the scumbag but at least you'd be paying less interest. A £10,000 loan at available rates of 3.4% ends up having just around £500 interest applies whereas with Amigo Loans you can end up repaying double what you borrowed.

The only thing you can do is to try to get another loan with a lower APR for the settlement amount, use that to repay the Amigo loan and repay the cheaper loan instead. And then figure out a way to go after the friend for the money. Personally if it were me and they owe over £5000 I would bankrupt the sod just to make their life hell even though it would cost me money to do it. If they own their own home I'd definitely do it just to see them lose their house, that is how much of a betrayal I think this is of a friend.

If you look on this board it is littered with people who ask about being guarantors and the answer is always DON'T DO IT because the board is also littered with stories like yours.

Mahsroh

There is nothing wrong here. If you continue to make the payments as you are, at the end of 36month term it will be paid off.

The reason you've only paid off £1100 is because at the front end of the loan, the interest is higher. Without going into detail or doing detailed calcs. In month 1 of the loan a £500 payment may be £50 repayment, £450 interest. By month 36, that may then be £450 repayment, £50 interest, for example.

The total amount payable is about £17k including interest. At the end of the 3 years you will have repaid that £17k.

dealer_wins

One option would be for your husband to apply for a loan at a much lower rate, and pay off the Amigo loan early.

Sounds like an expensive lesson OP, hope your ex "friend" gets his comeuppance one way or another.

finezyjqa

Thank you for reply.

Yes, I know we must to pay this. And always paying everything on time. Just I think ... this interest is 49,9%. After 10 months regular paying (total over £6800) this loan descreased just £1100. This is normal? This agreement is for 36 months (so 2 years left). So I think after this time the loan descrease probably to next £2200... but still around over £6000 will be for repayment. So this agreement is not for 36 months? Or is something wrong on my statement.

If yes, then I will needed around 9/10 years for paid this loan. :-(

Thank you once again for reply.

finezyjqa

Thank you Mashroh.

Mahsroh

This should give you an idea
https://en-gb.calculatestuff.com/financial/loan-amortization-calculator

finezyjqa

So now I understand. Thank you so much for your help :-)

Is very good lesson for my husband.

I wonder what to do with this EX FRIEND... He make this with premeditation. Changed telephone number, locked on Facebook and etc.

Thank you guys!

finezyjqa

* Probably court when we settlement this loan.

Mahsroh

As "Dealer Wins" said above, the fact your husband was his guarantor suggests he has a good credit history so considering you're seemingly lumbered with this debt, I suggest you consider taking out a loan from a high street bank at around 3% to 3.5% to pay off this debt.

Caz3121

finezyjqa wrote: »

The loan is on £10,000 for a 36 months. The monthly rate is £487,89

are you sure it is 36 months? the repayments look like it is a 48 month term
£10k 36 months @ 49.9% APR would be a monthly payment of £540.52
Google "Guardian Loan Calculator" and see if you can get the figures to match...you will be able to check the interest/principal split of each payment against your sums (you will also be able to check how much interest would be saved if there was a new lower rate loan taken
as to the "friend" what a horrible thing to do to someone..hopefully karma will step in