Loan query

Sharz

I know it's crazy but it just goes to show that even when we think we are knowledgeable, we can still get caught out.

My loan agreement has evaded me. I normally put things in a safe place but this has got me baffled and totally stressed out.

KatrinaWaves

Gaz83 wrote: »

This is absolutely mental, OP. Are you saying you borrowed £7,000 and agreed to pay it back at £302 for 180 months (fifteen years)? So it's going to cost you £54,360 to pay back £7,000?

It makes slightly more sense than thinking it was only 18months, and paying back £5436 on a £7000 loan!

Sharz

Well rather than beat myself up about it. I will finish paying off the loan, sort out the arrears and chalk it up as a valuable lesson learned as there is not much else I can do.

Gaz83

Sharz wrote: »

I know it's crazy but it just goes to show that even when we think we are knowledgeable, we can still get caught out.

My loan agreement has evaded me. I normally put things in a safe place but this has got me baffled and totally stressed out.

But surely this is just basic, basic arithmetic? £302 x 180?

How much is outstanding on the loan? The interest must be astronomical. Could you get an unsecured loan for the outstanding balance and pay off with that?

Sharz

Have requested my secured loan agreement which they have verbally refered to as a mortgage agreement and also clarified the outstanding balance. But I will still look for my original agreement in the meantime.

Not sure what my options are for getting an unsecured loan but will check

Sharz

Thank you all for your input as harsh as it was Gas83.

MEM62

Sharz wrote: »

I know it's crazy but it just goes to show that even when we think we are knowledgeable, we can still get caught out.

It's not about knowledge, it's about reading. All of the T'c & C's, including the most important - the type of loan you have signed up for, will be in the documents that you signed.

Sharz wrote: »

My loan agreement has evaded me. I normally put things in a safe place but this has got me baffled and totally stressed out.

Then ask the lender for a copy.

Sharz wrote: »

Well rather than beat myself up about it. I will finish paying off the loan, sort out the arrears and chalk it up as a valuable lesson learned as there is not much else I can do.

Don't stick you head in the sand. Do something about it! At the very least get a copy of the agreement so that you know what you are dealing with. You might then be able to explore whether there are any options open to you to improve the situation - refinancing or overpayments being just two possibilities.

TrickyDicky101

Gaz83 wrote: »

The interest must be astronomical. Could you get an unsecured loan for the outstanding balance and pay off with that?

I make it 66% APR without taking account of any fees paid. Mind-boggling over the 15 years.

dresdendave

Something here doesn't add up.

£7000 over 15 years with monthly payment of £302 equates to about 66%APR, that's worse than Amigo.

Previous poster obviously types faster than me!

Sharz

Not sticking my head in the sand MEM62 just not sure what my rights are if any, until I receive my agreement or find my misplaced one.