Beware Lloyds loans rip off

Dave_m

Long story... a year ago I left my my I had no loans no bank account or money, my wife had full control over money my wage went In to her accounts , so when I left I set up my own account and soon started spending money I did not have on over draft CC cards, at the time I was trying to make friends show off I wasted money about 4000£ I decided it had to stop and pay of cards so I got loan with out looking at what I would pay back just what I could afford a month I decided 100£ Lloyds bank offed a loan for 4250£ paying back 100£ a month.
I been paying the loan for 9 months no missed payments.
During the time of spending the money before the loan I was in a deep depression and I am sorry to say at a few points almost took my own life.. after a lot of hard work I am now happy to say I am out of that and my mental health is great, my wife and I are back together and this week I moved back home but ... she was unaware of the loan when I told her she went mad and when I showed her how much I was paying back she was even madder in fact the last few days has been very hard... she looked at the loan over the last 9 months I have been paying back 100£ only 25£ a month going towards the loan and the rest has been interest if I carry on paying the loan it’s will cost almost £8000
If I was able to pay it of now I’m would have to pay off £4254 which is more then I took out... I phoned Lloyds they said there is nothing they can do they can not lower it my wife if mad and I am back to square one where she is mad at me
We do not have money to pay it all off at once I can not get another loan ... I have no other debts and work full time ... I can not believe I have done this and most of all I can not believe that a high street bank can charge this much I did wate money and don’t have anything to show for it but at the time I was mentally ill any help
Or advice greatfully received
Dave x

Lioness_Twinkletoes

Pay it off as quickly as possible. In the future, read all financial paperwork fully before committing. There is no case for being missold which is clearly what you’re alluding to.

Your wife needs to calm down and get over it. Her attitude isn’t helping.

Edi81

Why is the loan a rip off? You admit you didn’t look at what you were paying back.
Lloyds price for risk and it sounds as though you were a riskier customer.

Try and overpay as much as you can and read before you sign.

DrEskimo

What are the details of the loan? How long is the loan agreement and what is the APR?

dealer_wins

Funny how when people apply for the loans its not a ripoff, but when the money is spent it then magically becomes one!!

DCFC79

DrEskimo wrote: »

What are the details of the loan? How long is the loan agreement and what is the APR?

The wifes the expert here and looked at the loan ��.

DrEskimo

DCFC79 wrote: »

The wifes the expert here and looked at the loan ��.

True...

Although there is a misconception about how interest is charged on the loan....

From the numbers I'm going to guess it's about 7year with an APR of around 22%.

In which case the interest will be about £4,000. The fact that settlement is higher than the loan must account for early settlement fees too, so ignoring that, the outstanding balance is around £4k based on the above.

Overpaying the loan by £100 a month will result in the loan being paid back in 28months, and the interest charged would only be £1,100.

All of course assuming my estimation is correct....seemed easier to just ask! :rotfl:

Craig1981

overpaying your loan by even £25 a month with reduce interest and repayment period by a good margin

if you unable to pay off in full or get better APR, then your best option is to make overpayments as best you can - a good example is listed above

foxy-stoat

Think you should re-think your title...

"Be aware of what you are accepting and signing up for"

Shame this isn't taught in schools or colleges - with the information available online to all, folk seem to be unable to work out for themselves what is and isn't affordable or a good deal.

Hope you can overpay this loan as soon as you can so you can save money on the interest.

marcarm

Just to add, that at the start of a loan most of the repayments will be towards interest when the capital is higher, but near the end of the loan the repayments will be mainly capital and not interest.

Jami74

Dave_m wrote: »

my wife and I are back together and this week I moved back home but ... she was unaware of the loan when I told her she went mad and when I showed her how much I was paying back she was even madder in fact the last few days has been very hard...

...I phoned Lloyd's they said there is nothing they can do they can not lower it my wife is mad and I am back to square one where she is mad at me

Or advice gratefully received

I'm a bit worried about how mad your wife is with you. It sounds like you've gone through a terrible time and managed to pull yourself out of a bad place. You have only just got back together but instead of being all happy and romantic, she's mad because you have a loan which you can afford to pay? Yes it's an expensive loan but it got you out of a hole when you needed it. Please take care of yourself. X