Too much interest or usual amount?

JetFighter_2

Hello,

I took out an 18 month £1000 loan with a monthly repayment amount of £225.

6 months later I have found out the total amount I have to repay is £4000.

The APR is 1008.5%

Is this a usual amount? It seems a lot to repay.

Thanks.

PeacefulWaters

It's a ridiculous amount to repay.

I assume you have a problem with your credit history.

Not borrowing at all is the way forward.

[Deleted User]

It's a ridiculous APR to agree to, but presumably you were happy enough with it at the time.

Oakdene

So you were happy, presumably, when you took the loan out knowing that you would be paying £225 a month for 18 months?

ReadingTim

You would have been told at the time that the total amount you had to repay would be £4,000. It's not the bank's fault it has taken you 6 months to read and/or understand this information.

Whether it's normal or not is now irrelevant. What is relevant is that 6 months ago, you agreed you were perfectly happy with it.

AstroTurtle

words fail me

JetFighter_2

ReadingTim wrote: »

You would have been told at the time that the total amount you had to repay would be £4,000. It's not the bank's fault it has taken you 6 months to read and/or understand this information.

Whether it's normal or not is now irrelevant. What is relevant is that 6 months ago, you agreed you were perfectly happy with it.

It wasn't a bank. More like a high street loan shop. They never mentioned the full amount I had to repay. They did say it was £225 a month. They either said or I thought they said 12 payments. They never mentioned the number £4,000 at all. I know that. I would have queried that much.

And I'm not aware that this forum is for sanctimonious and irrelevant moralising. If you haven't got anything useful to post, then don't.

TadleyBaggie

The fact that after paying back 4 payments to the total of £900 and you still had 8/14 more payments should have raised alarm bells. As has been said, the interest rate would make loan sharks blush.

D_M_E

Too late now, you are stuck.

I assume you are not elligible for a BT or 0% credit card?

If not, would be worthwhile asking them for a settlement amount then see if you can get a credit card with a limit around the figure quoted, getting a cash advance on the card and pay off the loan with it - the card interest rate, though likely to be high, will most certainly be far less than that of the loan.

System

See if you can get a credit card with cash transfer or a bank loan from somewhere else with a much lower APR and pay off the current loan with the new one. Even getting a sub-prime credit card with ridiculous interest rates in the 30-40% range, taking cash out of the cash machine and paying off the loan with that would be far cheaper.

ViolaLass

Were you given any paperwork?