Please help calculate loan settlement figure

Pixie5740

My calculation of just over £4k didn't take into account any fees for repaying early which can be up to 2 months worth of interest. What would happen if you made a payment of £3k now depends on the T&C of the loan. Some lenders will use an overpayment to reduce your monthly payments and some the term with the latter being the least expensive option for the borrower.

Yes the interest rate is high but you did agree to it when you took out the loan. It must have been worth it to you at the time. Write to Hitachi and ask them for a copy of your consumer credit agreement.

PeacefulWaters

KLS0817M wrote: »

Right I see, thanks for explaining.
It just baffles me that I have been paying nearly £200 a month for 16 months and in order to settle they still want me to pay more than I even initially borrowed, it feels like loan sharking
I was expecting it to be more like £3.2k by now.. My partner thinks we should write to ombudsman because it just doesn't feel right, but I wanted to get all the advice I could before heading down that path. Otherwise I guess I'll just have to plod along paying the monthly until I've saved more but it's hard to save with such a large monthly outgoing.
Do you know what would happen if I were to pay a chunk of it off? Is it possible to pay £3k now, and how would that affect my monthly payments?
I know I should just phone up again and ask them these questions but it's soul destroying, they don't have the best customer service and I'm only looking for rough advice on here.

Borrow at very high interest rate, pay lots back.

It's no more complicated than that.

When you're finally done with this debt, avoid borrowing. Save for everything. You'll be better off by the interest saved and feel like you've genuinely achieved your purchases instead of relying on credit.

TrickyDicky101

Given that 30.7% is a flat rate then unfortunately it is probably correct that you owe (with the imposition of the c.2 months of penalty interest) close to your starting amount.

It would thus (as already mentioned) be a very good idea to settle this debt now, possibly using alternative (ie cheaper) loan funding if it is available.

[Deleted User]

KLS0817M wrote: »

It just baffles me that I have been paying nearly £200 a month for 16 months and in order to settle they still want me to pay more than I even initially borrowed, it feels like loan sharking

It's not loan sharking if you have both a correctly calculated settlement figure and the use of your kneecaps.