Everyday loans settlement figure

rach1000

Hi,

Hoping for some advise re a loan settlement figure. I took a loan out at the end of Dec with Everyday Loans for £8000. My credit rating is not so good and needed the funds at the time so went ahead though I knew the interest was very high. Luckily my financial position has changed and I am able to pay of the loan.

The settlement shows I was charged £10394 for interest initially with interest rebate of £9180 and having made 2 payments of £383 already the settlement balance is £8400. Does this mean since my loan begun in Dec I’ve been charged over £1000 in interest? Im really confused on how the whole interest has been worked out and would appreciate any guidance on it and if this is correct.

Thanks,
😊

MorningcoffeeIV

You've been charged interest for the months you had the loan and the settlement figure also includes two months early settlement fee. Those 4-5 months interest totals around £1k. 

With a high interest loan, you pay a lot of interest. Settling early will save a fortune.

rach1000

Ah I see, I couldn’t work out where the extra charges came from but yes when I checked my agreement after your response it mentioned 58 days extra interest would be added if settled early. 

Bit of a sting but better than paying the 10 grand interest over the 4 years!

Thanks 😊