Compound interest

bwoolley14

About 14yrs ago we took out a loan with ocean finance (big mistake) since then it’s been sold on to various company’s, the most recent is Elderbridge. We have statements saying that we owe approx £6,000

phoned yesterday to get an early settlement figure, to be told we owe £41,000  -£35,000 is compound interest!  

Has anyone else had this issue?

foxy-stoat

Need more information.
Original loan amount, original term length, interest rate, monthly payment.

Nearlyold

The only way the interest can accrue like that is if your payments have not been enough to cover the interest. Have you been making any payments at all since the date of the statements.  If so how much have you been paying and how does that compare with the payments you originally contracted to pay when you took out the loan?
Have any late fees or similar been added to the loan? 

bwoolley14

I would have to dig out original paperwork, yes we have been making payments  

Clive_Woody

bwoolley14 said:

I would have to dig out original paperwork, yes we have been making payments  

Any missed payments? 

Need more info to understand where your figure of £6k comes from and where their figure comes from.

foxy-stoat

bwoolley14 said:

I would have to dig out original paperwork, yes we have been making payments  

Taking out secured borrowing would be something I wouldn't forget the details of, what did you spend the money on?

 And have you been making the full monthly payment?

bris

foxy-stoat said:

bwoolley14 said:

I would have to dig out original paperwork, yes we have been making payments  

Taking out secured borrowing would be something I wouldn't forget the details of, 

Is it secured? The OP doesn't say.

Having been sold to different companies over the years suggests it's it been in default at some point so fees etc would push up the debt, and with high interest rates from a company like Ocean finance then after 14 years 35k interest isn't surprising.

Having borrowed just 6k then I will assume it was originally over a much shorter term like 5 years or something so the details of the original loan are needed with the interest rate at the time before anyone can really look into it.