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  • FIRST POST
    • JetFighter
    • By JetFighter 9th Apr 18, 3:23 PM
    • 3Posts
    • 0Thanks
    JetFighter
    Too much interest or usual amount?
    • #1
    • 9th Apr 18, 3:23 PM
    Too much interest or usual amount? 9th Apr 18 at 3:23 PM
    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.
Page 1
    • PeacefulWaters
    • By PeacefulWaters 9th Apr 18, 3:26 PM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    • #2
    • 9th Apr 18, 3:26 PM
    • #2
    • 9th Apr 18, 3:26 PM
    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.
    • zx81
    • By zx81 9th Apr 18, 3:28 PM
    • 18,626 Posts
    • 19,881 Thanks
    zx81
    • #3
    • 9th Apr 18, 3:28 PM
    • #3
    • 9th Apr 18, 3:28 PM
    It's a ridiculous APR to agree to, but presumably you were happy enough with it at the time.
    • Oakdene
    • By Oakdene 9th Apr 18, 3:31 PM
    • 2,444 Posts
    • 8,828 Thanks
    Oakdene
    • #4
    • 9th Apr 18, 3:31 PM
    • #4
    • 9th Apr 18, 3:31 PM
    So you were happy, presumably, when you took the loan out knowing that you would be paying 225 a month for 18 months?
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydion ddolen,
    Dau enaid ond un taith.


    • ReadingTim
    • By ReadingTim 9th Apr 18, 3:56 PM
    • 2,934 Posts
    • 4,319 Thanks
    ReadingTim
    • #5
    • 9th Apr 18, 3:56 PM
    • #5
    • 9th Apr 18, 3:56 PM
    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
    • By AstroTurtle 9th Apr 18, 4:06 PM
    • 218 Posts
    • 638 Thanks
    AstroTurtle
    • #6
    • 9th Apr 18, 4:06 PM
    • #6
    • 9th Apr 18, 4:06 PM
    words fail me
    • JetFighter
    • By JetFighter 9th Apr 18, 4:15 PM
    • 3 Posts
    • 0 Thanks
    JetFighter
    • #7
    • 9th Apr 18, 4:15 PM
    • #7
    • 9th Apr 18, 4:15 PM
    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.
    Originally posted by ReadingTim
    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.
    Last edited by JetFighter; 09-04-2018 at 5:51 PM.
    • TadleyBaggie
    • By TadleyBaggie 9th Apr 18, 4:22 PM
    • 2,904 Posts
    • 2,214 Thanks
    TadleyBaggie
    • #8
    • 9th Apr 18, 4:22 PM
    • #8
    • 9th Apr 18, 4:22 PM
    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
    • By D_M_E 9th Apr 18, 4:30 PM
    • 1,824 Posts
    • 64,946 Thanks
    D_M_E
    • #9
    • 9th Apr 18, 4:30 PM
    • #9
    • 9th Apr 18, 4:30 PM
    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.
    • Tarambor
    • By Tarambor 9th Apr 18, 4:45 PM
    • 3,567 Posts
    • 2,639 Thanks
    Tarambor
    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
    • By ViolaLass 9th Apr 18, 4:56 PM
    • 5,435 Posts
    • 7,488 Thanks
    ViolaLass
    Were you given any paperwork?
    • JetFighter
    • By JetFighter 9th Apr 18, 5:49 PM
    • 3 Posts
    • 0 Thanks
    JetFighter
    Were you given any paperwork?
    Originally posted by ViolaLass
    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
    • By ViolaLass 9th Apr 18, 9:48 PM
    • 5,435 Posts
    • 7,488 Thanks
    ViolaLass
    You weren't given the paperwork when you got the loan?

    Did you sign something? Did you read it?
    • John-K
    • By John-K 9th Apr 18, 10:06 PM
    • 654 Posts
    • 1,023 Thanks
    John-K
    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.
    Originally posted by JetFighter
    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
    • By John-K 9th Apr 18, 10:09 PM
    • 654 Posts
    • 1,023 Thanks
    John-K
    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.
    Originally posted by JetFighter
    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-ones 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
    • By C_Mababejive 9th Apr 18, 10:45 PM
    • 10,576 Posts
    • 9,500 Thanks
    C_Mababejive
    Did you get the loan from the local !!!!!?
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • Tarambor
    • By Tarambor 10th Apr 18, 4:36 AM
    • 3,567 Posts
    • 2,639 Thanks
    Tarambor
    Did you get the loan from the local !!!!!?
    Originally posted by C_Mababejive
    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
    • By enthusiasticsaver 10th Apr 18, 7:53 AM
    • 7,079 Posts
    • 15,328 Thanks
    enthusiasticsaver
    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.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • GMac14
    • By GMac14 10th Apr 18, 8:00 AM
    • 55 Posts
    • 8 Thanks
    GMac14
    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
    • By iolanthe07 10th Apr 18, 10:47 AM
    • 5,065 Posts
    • 4,750 Thanks
    iolanthe07
    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.
    I used to think that good grammar is important, but now I know that good wine is importanter.
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