Settling with Varooma

yorkshiredee

I would be better paying off a chunk than sitting on the money for 10 months as the interest is charged daily. I may have to try and work out the difference with them if they don’t accept my money will cover it all.

SnowTiger

yorkshiredee wrote: »

I took out a 2k loan with Varooma in February due to a poor credit score and needing urgent house repairs. I have paid two payments third coming out tomorrow of the 36 months I have signed for.
My life has just been turned on it’s head and I can no longer able to pay the loan. A dear friend has offered to help me out and I have got together a total of £1700 plus tomorrow’s payment of £173.

My question being does anyone know if I Varooma will except a lot lower settlement than I am due to pay. I know the interest is charged daily but with an APR of 190% it’s still a lot of money.

Any advice appreciated

I can't make the figures work: http://www.whatsthecost.com/loan.aspx.

However, if interest is charged daily and you've made payments for two months, there must be less than £2,000 outstanding on the loan.

£1,700 + £173 is £1,873.

You must, surely, have paid off something towards the £2,000 principle.

Isn't the difference between what's outstanding on the loan and what you can pay tomorrow less than £100?

Can't you scrape together a hundred quid to get rid of he loan completely? Even if not, I'd pay £1,873 towards the loan tomorrow and the rest as soon as possible. An APR of 190% is horrendous, but manageable on a balance of £100.

Gaz83

SnowTiger wrote: »

I can't make the figures work: http://www.whatsthecost.com/loan.aspx.

However, if interest is charged daily and you've made payments for two months, there must be less than £2,000 outstanding on the loan.

£1,700 + £173 is £1,873.

You must, surely, have paid off something towards the £2,000 principle.

Isn't the difference between what's outstanding on the loan and what you can pay tomorrow less than £100?

Can't you scrape together a hundred quid to get rid of he loan completely? Even if not, I'd pay £1,873 towards the loan tomorrow and the rest as soon as possible. An APR of 190% is horrendous, but manageable on a balance of £100.

Perhaps with the 58 days' interest being added it's taking the settlement figure back above the £2,000 originally borrowed.

Candyapple

£2,000 borrowed for 3 years on an APR of 190% is £172.22 monthly, for a total amount repayable £6,199.92. Holy mother of god! :eek:

Surely it would have been better for you to sell your car/buy a cheaper model and use that money instead? Sold your phone or anything else of value? Asked a friend?? That is sheer madness.

I highly doubt they would be willing to accept £1,873 as repayment in full, especially when they can quite easily just sell your vehicle to recoup their losses. I'd be interested to see what they come back with. Please keep the thread updated OP.

foxy-stoat

You will of probably paid less than £100 off the balance - so if your dear friend can lend you the full £2000, plus £173 for the next payment, plus £600 for the 2 months interest they will charge you to settle early you maybe able to walk away from the loan.