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Nemo secured loan
I have a secured loan with Nemo finance, borrowing £40k to consolidate existing debt. I've been repaying £460 per month for 5 years (approx £25k repaid thus far). I am now looking to pay off the loan in full, the settlement figure is still over £40k. How can that be? The loan will cost me £25k for 5 years of borrowing.
Is there something I can do to contest this as it seems very extreme for someone who only took on the loan as I was in a desperate finance situation at that time.
Is there something I can do to contest this as it seems very extreme for someone who only took on the loan as I was in a desperate finance situation at that time.
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Comments
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What are the details of the loan?
What is the APR? Is it a interest only loan?0 -
what is your interest rate?
At the beginning of the loan you are mostly paying interest so will have paid of very little of the capital. There is a useful graphic that shows this - will see if I can find itI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
This is for a 6% loan - I suspect, if you were desperate at the time, you are on a much higher rate where the interest will be an even bigger proportion of your monthly payment in the early years.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Cstonie said:I have a secured loan with Nemo finance, borrowing £40k to consolidate existing debt. I've been repaying £460 per month for 5 years (approx £25k repaid thus far). I am now looking to pay off the loan in full, the settlement figure is still over £40k. How can that be? The loan will cost me £25k for 5 years of borrowing.
Is there something I can do to contest this as it seems very extreme for someone who only took on the loan as I was in a desperate finance situation at that time.Hi, I`m really sory for the situation you find yourself in, If you had chosen debt management instead, your debt would now be repaid, and you would be looking forward to a more rosy future, instead your faced with a 40k bill to settle.I notice on their website, they do not advertise the interest rate they charge, i would assume your interest rate will be variable, which is why the debt has grown so large.A very good example of why you should never consolodate non priority debt into priority, a salutory lesson for others here.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Do you have the funds to settle in full? Best to do this ASAP if you to avoid further interest charges.Cstonie said:I have a secured loan with Nemo finance, borrowing £40k to consolidate existing debt. I've been repaying £460 per month for 5 years (approx £25k repaid thus far). I am now looking to pay off the loan in full, the settlement figure is still over £40k. How can that be? The loan will cost me £25k for 5 years of borrowing.
Is there something I can do to contest this as it seems very extreme for someone who only took on the loan as I was in a desperate finance situation at that time.
Not sure what you would contest, unless they have done anything that wasn't in the contract you signed."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
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