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Updraft

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  • DrEskimo said:
    Updraft are pretty good. Offered me a loan despite having a high amount of debt (+£15k) and maxing my credit cards. They offered a loan of £1500 at 25.9% over the two years so around 12% APR which is far better than I could get anywhere else. I'm waiting to make six payments with them to try and get an increase on the loan to allow me to target clearing debt with higher interest.
    Are you sure it's not 25.9% APR? Or even worse 25.9% fixed rate?

    I have never seen a loan company represent it's interest in the manner you describe.
    Yes I'm sure, £421 interest on a £1,500 loan over 2 years.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 20 January 2022 at 8:59AM
    That makes the APR around 25.9%.

    You don't halve the APR just because it's over 2 years. The APR remains static.

    Double check your plan of clearing the most expensive rate first, as you may well be clearing lower rate debt.
  • DrEskimo
    DrEskimo Posts: 2,432 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    DrEskimo said:
    Updraft are pretty good. Offered me a loan despite having a high amount of debt (+£15k) and maxing my credit cards. They offered a loan of £1500 at 25.9% over the two years so around 12% APR which is far better than I could get anywhere else. I'm waiting to make six payments with them to try and get an increase on the loan to allow me to target clearing debt with higher interest.
    Are you sure it's not 25.9% APR? Or even worse 25.9% fixed rate?

    I have never seen a loan company represent it's interest in the manner you describe.
    Yes I'm sure, £421 interest on a £1,500 loan over 2 years.
    As above, the APR doesn't get divided by the term. Your loan is being charged at 25.9% APR, not 12%.
  • Yeah good point, my apologies. It's still the lowest of my debt providers but not as low as I thought. I'm going to post about another option I have on the loans page
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