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Post Office Loan - Early Repayment
Comments
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it is a fixed APR....your interest rate will be 3.2% of the outstanding amount for the duration of the loan
initially the balance owed will be higher and the interest will be calculated on that....as you reduce the loan the interest will decrease.
Monthly payments remain the same throughout but the split between capital and interest changes...as you go through the life of the loan your monthly payment will include more capital and less interest0 -
it is a fixed APR....your interest rate will be 3.2% of the outstanding amount for the duration of the loan
initially the balance owed will be higher and the interest will be calculated on that....as you reduce the loan the interest will decrease.
Monthly payments remain the same throughout but the split between capital and interest changes...as you go through the life of the loan your monthly payment will include more capital and less interest
So at 3.2% fixed, for the example I gave... 10K Loan... over say 4 years
total repayable 10.5K sounds about right? Loans aren't so bad then?0 -
So at 3.2% fixed, for the example I gave... 10K Loan... over say 4 years
total repayable 10.5K sounds about right? Loans aren't so bad then?
https://www.moneysupermarket.com/loans/calculator/"We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
So at 3.2% fixed, for the example I gave... 10K Loan... over say 4 years
total repayable 10.5K sounds about right? Loans aren't so bad then?
you originally quoted 3 years which would be <£500 interest
interest will be more if you spread the loan over longer terms
over 4 years it shows £657.18 interest
over 5 years £822.33
7 years £1,157.57 etc0 -
Thanks for the reply, I'm just wondering how you got to that amount?
I could be working this out completely wrong, but the total amount of the loan including interest would be £4904 to pay over 24 months. If I take the £904 and divide it by 730 days (24 months) that gives me £1.24 as a daily interest rate. If I then multiply this by the 58 days they mentioned that would bring me to roughly £72.00.
Again, apologies if this is a completely incorrect way of calculating this.
Yes you are wrong.
£4000 X 22.4% = £896 / 12 = £74.67 per month or £2.45 per day x 58 = £142.10 or there abouts.
Just pay back the settlement figure and dont take out a loan with this interest rate again.0 -
yeah loans in general never really tell you how much true interest you will end up paying
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Stop taking out loans from the bloke down the pub.
Use a regulated lender and they'll always tell you the interest you'll pay.0
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