Too much interest or usual amount?

JetFighter_2 · 9 April 2018 at 3:23PM

Hello,

I took out an 18 month £1000 loan with a monthly repayment amount of £225.

6 months later I have found out the total amount I have to repay is £4000.

The APR is 1008.5%

Is this a usual amount? It seems a lot to repay.

Thanks.

PeacefulWaters · 9 April 2018 at 3:26PM

It's a ridiculous amount to repay.

I assume you have a problem with your credit history.

Not borrowing at all is the way forward.

[Deleted User] · 9 April 2018 at 3:28PM

It's a ridiculous APR to agree to, but presumably you were happy enough with it at the time.

Oakdene · 9 April 2018 at 3:31PM

So you were happy, presumably, when you took the loan out knowing that you would be paying £225 a month for 18 months?

ReadingTim · 9 April 2018 at 3:56PM

You would have been told at the time that the total amount you had to repay would be £4,000. It's not the bank's fault it has taken you 6 months to read and/or understand this information.

Whether it's normal or not is now irrelevant. What is relevant is that 6 months ago, you agreed you were perfectly happy with it.

AstroTurtle · 9 April 2018 at 4:06PM

words fail me

JetFighter_2 · 9 April 2018 at 4:15PM

ReadingTim wrote: »

You would have been told at the time that the total amount you had to repay would be £4,000. It's not the bank's fault it has taken you 6 months to read and/or understand this information.

Whether it's normal or not is now irrelevant. What is relevant is that 6 months ago, you agreed you were perfectly happy with it.

It wasn't a bank. More like a high street loan shop. They never mentioned the full amount I had to repay. They did say it was £225 a month. They either said or I thought they said 12 payments. They never mentioned the number £4,000 at all. I know that. I would have queried that much.

And I'm not aware that this forum is for sanctimonious and irrelevant moralising. If you haven't got anything useful to post, then don't.

TadleyBaggie · 9 April 2018 at 4:22PM

The fact that after paying back 4 payments to the total of £900 and you still had 8/14 more payments should have raised alarm bells. As has been said, the interest rate would make loan sharks blush.

D_M_E · 9 April 2018 at 4:30PM

Too late now, you are stuck.

I assume you are not elligible for a BT or 0% credit card?

If not, would be worthwhile asking them for a settlement amount then see if you can get a credit card with a limit around the figure quoted, getting a cash advance on the card and pay off the loan with it - the card interest rate, though likely to be high, will most certainly be far less than that of the loan.

System · 9 April 2018 at 4:45PM

See if you can get a credit card with cash transfer or a bank loan from somewhere else with a much lower APR and pay off the current loan with the new one. Even getting a sub-prime credit card with ridiculous interest rates in the 30-40% range, taking cash out of the cash machine and paying off the loan with that would be far cheaper.

ViolaLass · 9 April 2018 at 4:56PM

Were you given any paperwork?

Too much interest or usual amount?

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