Too much interest or usual amount?

JetFighter_2 · 9 April 2018 at 5:49PM

ViolaLass wrote: »

Were you given any paperwork?

I recently got them to send me the loan documents. That's where I got the figures in the original post from.

If I have to pay it then I will. I will just try to settle early.

ViolaLass · 9 April 2018 at 9:48PM

You weren't given the paperwork when you got the loan?

Did you sign something? Did you read it?

John-K_3 · 9 April 2018 at 10:06PM

JetFighter wrote: »

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.

Those two sentences contradict one another. You knew that you had to repay over £4,000the moment that they told you that you had to pay eighteen times £225. Are you saying that you did not know that 18 Times 225 is 4050?

John-K_3 · 9 April 2018 at 10:09PM

JetFighter wrote: »

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.

I think that people are aghast at what you are saying. As in my post above, 18 times 225 is 4050; the numbers were right there at the start. No-one’s mentioned morals, either, just shock at what you have done, especially given you seem not to have bothered thinking about what the numbers meant first.

Is there something you are not telling us, something to give some context?

C_Mababejive · 9 April 2018 at 10:45PM

Did you get the loan from the local !!!!!?

System · 10 April 2018 at 4:36AM

C_Mababejive wrote: »

Did you get the loan from the local !!!!!?

Sadly the answer is likely to be nno. There's a loan company advertising on TV at the moment, Oakam, who have high street branches and will lend you up to £1750 with a typical APR of 1421%.

Had to laugh when I saw this referral they put from a customer on their website:

!!!8220;I think it has improved my credit rating, which makes the future a lot brighter!!!8221;
Melanie, London

No Melanie, it hasn't and in fact it's done the complete opposite.

enthusiasticsaver · 10 April 2018 at 7:53AM

There is something seriously wrong with advertising standards on what are essentially payday loans when companies charging these criminally high interest rates are household names due to the fact they seem to be able to advertise with very little hindrance.

Ask for an early settlement figure OP but be prepared for it not to be low. Count it as a very expensive lesson and in the future before taking out loans you need to know the interest rate.

GMac14 · 10 April 2018 at 8:00AM

I suspect the OP saw the money available to him, as in a grand in their hand and then had little or no interest in how much they will be paying back. All to often people in this situation just know how much they are borrowing and how much the monthly payment will be.

As much as Im in the same boat as a lot of people as in being aghast that people will do this and end up in this situation, sometimes you have got to just ignore the mistake/idiocy, but actually say to the OP, ok, you have been a fool but welcome to the forums, you have come for advice on how to fix the issue and learn from your mistakes.

I am far from perfect with money and credit, but getting much better. If the forum was made up of only people who had tiny mortgages, thousands saved in ISAs and stoozing or whatever it is on CC, then it would be a pretty bland place. Lets not all jump on the OP, lets maybe just get past the mistake and if they have found the forums, and posted asked for help, try and be constructive.

OP, I was in a mess years ago with a loan secured against my car, payments of £500 per month, of which about £170 went towards clearing the balance the rest being interest, was stuck in situation of not being able to get enough to pay off the 3k balance as £500 per month was eating into any chance of savings. GF at the time, now my wife, swooped in and paid it off for me. So rather than paying £500 per month I could pay her back £250 per month. She is now my wife and Im now making contributions towards her CC debt, but its all on 0% as she has great credit history.

Try and cut back other expenses, try and make extra payments if you can or save until you can pay off early. Oh yes, also, welcome to the forums.

iolanthe07 · 10 April 2018 at 10:47AM

No-one's mentioned morals

Well I'm mentioning morals. It is downright immoral to take advantage of people, who well may not be very financially savvy, with such a ruinous interest rate. Usury on this scale ought to be illegal.

AstroTurtle · 10 April 2018 at 11:33AM

iolanthe07 wrote: »

No-one's mentioned morals

Well I'm mentioning morals. It is downright immoral to take advantage of people, who well may not be very financially savvy, with such a ruinous interest rate. Usury on this scale ought to be illegal.

There is being financially savvy and then there's basic math.

£225 x 18 = £4050

If someone is making a conscious decision to go and seek out a loan then it's on them to at least be capable of basic math..

When we are going to stop spoon feeding people that the company is always wrong and that sometimes just sometimes, people are accountable for their own actions and decisions.

We don't give free passes to lack of knowledge in any other environment?

Oh you didn't know you should insure your car? I'll get rid of these 6 points then....

Too much interest or usual amount?

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