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  • FIRST POST
    • Levi22
    • By Levi22 10th Jan 18, 6:01 PM
    • 1Posts
    • 0Thanks
    Levi22
    Help me please on loan agreement
    • #1
    • 10th Jan 18, 6:01 PM
    Help me please on loan agreement 10th Jan 18 at 6:01 PM
    Hello can anyone help me please had a loan took out in may 2017 for 4000 and pay back 8,680.14
    Pay monthly 482.23
    Apr 78%
    Period of loan 18 months
    I have made 7 payments never late
    And today's settlement figure is 2964.46
    And I had a settlement figure in October for 3148.90
    I am questioning this figure and have asked for a breakdown it seems to high considering i payed three payments between the two settlement figures and only 184.44 was the difference I have used a calculator online and that says it should be 2105.96 but states it could be higher due to other fees ? Please help way out of my depth
Page 1
    • Pixie5740
    • By Pixie5740 10th Jan 18, 6:30 PM
    • 12,168 Posts
    • 17,182 Thanks
    Pixie5740
    • #2
    • 10th Jan 18, 6:30 PM
    • #2
    • 10th Jan 18, 6:30 PM
    Hello can anyone help me please had a loan took out in may 2017 for 4000 and pay back 8,680.14
    Pay monthly 482.23
    Apr 78%
    Period of loan 18 months
    I have made 7 payments never late
    And today's settlement figure is 2964.46
    And I had a settlement figure in October for 3148.90
    I am questioning this figure and have asked for a breakdown it seems to high considering i payed three payments between the two settlement figures and only 184.44 was the difference I have used a calculator online and that says it should be 2105.96 but states it could be higher due to other fees ? Please help way out of my depth
    Originally posted by Levi22
    What other fees/interest do the T&C of your loan say you will be liable for if you repay the loan early?
    • sourcrates
    • By sourcrates 10th Jan 18, 8:34 PM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    • #3
    • 10th Jan 18, 8:34 PM
    • #3
    • 10th Jan 18, 8:34 PM
    With any sub prime loan there may be an early repayment charge added.

    You need to check the T!!!8217;s & C!!!8217;s of your credit agreement to verify.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Sparx
    • By Sparx 10th Jan 18, 9:16 PM
    • 893 Posts
    • 493 Thanks
    Sparx
    • #4
    • 10th Jan 18, 9:16 PM
    • #4
    • 10th Jan 18, 9:16 PM
    Likely front-loaded interest... The interest rebate will become less the further you are in the agreement. Your first half of the term's payments will likely be paying the interest off, only a small amount against the capital.

    In short - pay it off as soon as you can.
    • Lungboy
    • By Lungboy 10th Jan 18, 9:19 PM
    • 1,405 Posts
    • 1,346 Thanks
    Lungboy
    • #5
    • 10th Jan 18, 9:19 PM
    • #5
    • 10th Jan 18, 9:19 PM
    Likely front-loaded interest... The interest rebate will become less the further you are in the agreement.
    Originally posted by Sparx
    Front loading isn't legal is it?
    • zx81
    • By zx81 10th Jan 18, 9:23 PM
    • 17,216 Posts
    • 18,295 Thanks
    zx81
    • #6
    • 10th Jan 18, 9:23 PM
    • #6
    • 10th Jan 18, 9:23 PM
    It's not front loaded. Interest is simply higher at the start of the term.
    • Herzlos
    • By Herzlos 10th Jan 18, 9:40 PM
    • 7,313 Posts
    • 6,586 Thanks
    Herzlos
    • #7
    • 10th Jan 18, 9:40 PM
    • #7
    • 10th Jan 18, 9:40 PM
    Yeah, the interest is higher initially because the balance is.

    Settlement figure will include an extra 58 days interest and any other fees you agreed to
    • Tarambor
    • By Tarambor 11th Jan 18, 12:15 PM
    • 3,027 Posts
    • 2,189 Thanks
    Tarambor
    • #8
    • 11th Jan 18, 12:15 PM
    • #8
    • 11th Jan 18, 12:15 PM
    Sounds correct. Take out a mortgage and in the first few years 3/4 of your monthly payments go to paying the interest. I'm 8 years into mine and even now its only roughly 50/50 so I repay 5000 a year and the amount owed only drops by 2500.

    The loan is working the same way.
    • Ganga
    • By Ganga 12th Jan 18, 6:48 PM
    • 1,109 Posts
    • 564 Thanks
    Ganga
    • #9
    • 12th Jan 18, 6:48 PM
    • #9
    • 12th Jan 18, 6:48 PM
    And with an apr of 78% its not surprising.
    ITS NOT EASY TO GET EVERYTHING WRONG ,I HAVE TO WORK HARD TO DO IT!
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