loans

billozz

hey guys newbie here, hope you can help.
i i take out a loan over 5 years and repayments are say £190 p/m .
over 10 yrs repayments are £108 p/m

i intend to pay the loan up quickly anywaysay after 3-4 months, both loans have "no redemption penalty",

i cannot figure out where the catch is obviously i am gonna take the loan over the longest term possible to keep the monthly payments as low as possible.

am i missing something here

thanks in anticipation
bill osborne

Robert_Sterling_3

am i missing something here

Well we are.
Can you tell us the amount of the loan and the interest rate on the loan and if there is an arrangement fee.

Tr@cker

No redemption penalty usually just means no interest penalty. Otherwise it'll probably be subject to rule78 rebate which doesn't favour early settlers.

billozz

sorry guys i didnt make myself clear.
the loan is £10000. no setup fee.i am trying to decide whether to take it out over 5 or 10 yrs....but i intend to pay it up very quickly i.e. a cple of months the reason i am undecided about the term is because obviously the longer term has lower monthly repayments, but a lot more interest to pay....but, if im going to pay it up after a cple of months i might as well make lower payments.
like i said im sure im missing summat but not sure what
thanks again
bill

Freddie_Snowbits

Short Term Loans

Intelligent Finance

Cahoot

Credit Card 0% Balance Transfers

Only if you intend to Pay It Back

If you have absolutely no intention of paying it back in the time allowed, you can always seek out Dolphin and Shark Credit Company! ::) ::) ::) ::)

Robert_Sterling_3

Beware the Rule of 78.

billozz

what is rule 78 please

Robert_Sterling_3

Google it up.
There are plenty of pages like

this one here