Paying interest due to pay date on weekends

jonesMUFCforever

OP have you not noticed that the monthly interest charged is slowly reducing, meaning more of your monthly repayment is now going towards the principal amount?

chris525uk

Okay. Thanks guys looks like its just me getting confused and had a shock. This is my first ever loan so i guess all i was expects to see was the £315 a month as that would = the 7500 odd over the 2 years.

Thank you all. I will stop stressing now.

p00hsticks

chris525uk said:

Oh okay so am i reading into this wrong?
This is how i see it. I take out a loan for 7k. But with the APR at 7.6% this would make it a total of £7,567.68 paying £315.32.  So how i expect to see my annual statement is: every month £315.32 and thats it... why am i seeing odd interest debit amounts? This would mean its pushing me over the total payable amount of £7,567.68... or is it £7,567.68 + interest. Am i being thick?

I think you are probably mis-reading the statement. rather than mis-understanding how the interest works.

Your image doesn't show the first few months payments, but I'm guessing that the opening statement balance on the first month was £7,000 - the amount you were actually lent - rather than £7,567.68 (the total amount you'll pay back) ?

Then each month the balance is going down by the amount you are paying, but the amount of monthly interest is being added back in. At the end of the 24th months the balance should be down to zero, and if you add up all the monthly interest payments over the 24 months they'll total £567.68.