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  • FIRST POST
    • scottmoreno
    • By scottmoreno 15th Sep 18, 11:06 PM
    • 11Posts
    • 1Thanks
    scottmoreno
    Satsuma loan early settlement help
    • #1
    • 15th Sep 18, 11:06 PM
    Satsuma loan early settlement help 15th Sep 18 at 11:06 PM
    Hi guys can anybody help me out with calculations on an early repayment on a loan I have taken out with satsuma, appreciate you may tell me to speak with them, but Iím hoping someone can help, so here goes

    I took out a loan for £100 a while back, it was £16.60 per month for 12 months so £199.20 in total - how they calculate this, each month they deduct the monthly payment of total balance so £199.20 - £16.60 = £183 then next month £183 - £16.60 = and so on you get me, well after my fifth payment I was able to repay it early, my remaining balance at that point was £116.60 they then told me to repay early it would be £87 exactly which would have been an early settlement rebate of £29.20 so all in over 5 months in I paid £70 interest over those 5 months as I had paid 5 payments of £16.60 = £83 then the early settlement balance of £87

    Now Iíve since taken out a loan itís satsuma for £1800 to clear my remaining payday loans and 2 credit cards I have, I kind of regret it now but it is what it is, my first payment is start of October for 12 months at £298.80 per month, Iím hoping to pay it off early after my 5th payment, my balance will be approx £2091.60 .. is anybody on here able to calculate an early settlement figure ?

    As I said before I took a loan out with them for £100 and repaid after 5 months so had a rebate of £29.20, as Iíve taken another loan out 18 times the amount of £100 would I times that rebate of £29.20 by 18 to obtain an early rebate amount and subtract that off the remaining balance ?

    Thank you
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 15th Sep 18, 11:45 PM
    • 25,307 Posts
    • 12,541 Thanks
    jonesMUFCforever
    • #2
    • 15th Sep 18, 11:45 PM
    • #2
    • 15th Sep 18, 11:45 PM
    Can I be the first to say that what you have done is stupid.
    Sorry if you think that to be rude but a credit card even a sub prime card will have an APR of say 40% which you have replaced with a loan of what 1500% APR?

    I can't comment on your figures.
    What goes around - comes around
    give lots and you will always receive lots
    • scottmoreno
    • By scottmoreno 15th Sep 18, 11:50 PM
    • 11 Posts
    • 1 Thanks
    scottmoreno
    • #3
    • 15th Sep 18, 11:50 PM
    • #3
    • 15th Sep 18, 11:50 PM
    Can I be the first to say that what you have done is stupid.
    Sorry if you think that to be rude but a credit card even a sub prime card will have an APR of say 40% which you have replaced with a loan of what 1500% APR?

    I can't comment on your figures.
    Originally posted by jonesMUFCforever
    Ta mate very helpful, I am in a !!!!! load of debt hence not being able to get a credit card, thanks for nothing
    • jonesMUFCforever
    • By jonesMUFCforever 15th Sep 18, 11:56 PM
    • 25,307 Posts
    • 12,541 Thanks
    jonesMUFCforever
    • #4
    • 15th Sep 18, 11:56 PM
    • #4
    • 15th Sep 18, 11:56 PM
    Don't you see that now you will be in a !!!! load of more debt - it would have been better to keep the credit cards as they were and not take out the Satsuma loan.
    I think I have been helpful and if you can unwind the Satsuma loan you should do so.
    What goes around - comes around
    give lots and you will always receive lots
    • scottmoreno
    • By scottmoreno 16th Sep 18, 12:01 AM
    • 11 Posts
    • 1 Thanks
    scottmoreno
    • #5
    • 16th Sep 18, 12:01 AM
    • #5
    • 16th Sep 18, 12:01 AM
    Well I’ve cleared the debt I had and now I have this loan to repay, I’ve got some money saved and as long as I save about &150 for next 6 months I should be able to settle early with the amount I currently have saved a side
    • Gaz83
    • By Gaz83 16th Sep 18, 12:15 AM
    • 3,565 Posts
    • 6,782 Thanks
    Gaz83
    • #6
    • 16th Sep 18, 12:15 AM
    • #6
    • 16th Sep 18, 12:15 AM
    Well Iíve cleared the debt I had
    Originally posted by scottmoreno
    No, you haven't.

    This is mental stuff, OP.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • Craig1981
    • By Craig1981 16th Sep 18, 5:38 AM
    • 421 Posts
    • 198 Thanks
    Craig1981
    • #7
    • 16th Sep 18, 5:38 AM
    • #7
    • 16th Sep 18, 5:38 AM
    Scott
    i think what the other posters are saying is that is was not a good idea to consolidate small debts with high-ish APR amounts with what seems to be a payday loan type loan, with much higher APR

    Find out from Satsuma if you can overpay your loan. if you can, pay whatever savings you have now to reduce the amount, and whatever extra you have until cleared.
    use this calculator for loan overpayments to see best option forward:
    https://www.themoneycalculator.com/loans/calculators/loan-overpayment-calculator/#!/dealfinder/loans/

    hopefully this experience you would have learnt from, and know now what not to do ongoing

    good luck
    • worried jim
    • By worried jim 16th Sep 18, 6:20 AM
    • 9,648 Posts
    • 14,847 Thanks
    worried jim
    • #8
    • 16th Sep 18, 6:20 AM
    • #8
    • 16th Sep 18, 6:20 AM
    No, you haven't.

    This is mental stuff, OP.
    Originally posted by Gaz83
    Definition of insanity "doing the same as before but expecting a different result".

    I fully buy into Martin's drive for financial education in schools to be improved.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • TrickyDicky101
    • By TrickyDicky101 16th Sep 18, 9:16 AM
    • 3,190 Posts
    • 2,101 Thanks
    TrickyDicky101
    • #9
    • 16th Sep 18, 9:16 AM
    • #9
    • 16th Sep 18, 9:16 AM

    Now Iíve since taken out a loan itís satsuma for £1800 to clear my remaining payday loans and 2 credit cards I have, I kind of regret it now but it is what it is, my first payment is start of October for 12 months at £298.80 per month, Iím hoping to pay it off early after my 5th payment, my balance will be approx £2091.60 .. is anybody on here able to calculate an early settlement figure ?
    Originally posted by scottmoreno
    By my calculations, your new loan for £1800 has been taken at a (nominal) annualised rate of c.150% equating to an APR (excluding any fees - I presume there weren't any) of 313%.

    Assuming repayments start 1 month following taking the loan out, after the 5th payment I calculate you will have repaid £463 of capital leaving £1,337 remaining.

    Add to that the 58 days of interest Satsuma can levy on top of the early settlement figure (a further c.£320) then I expect your early settlement figure to be at least: £1,657.
    • Tobyglen
    • By Tobyglen 18th Oct 18, 9:37 PM
    • 1 Posts
    • 0 Thanks
    Tobyglen
    Get rid of Satsuma as quick as you can spit out the pips.Must be the worst short term lender ever.I borrowed £800 for a friend for an emergency Vets bill on the 1st of the month,repaid £360 in one sum on the 28th of the month (30 day month btw).Asked for full srttlement figure on 18th of following month and told £662,paid it but queried the amount.Moron on the phone stated "Done by a very complicated system automatically so I can't explain".Knew it was going to be expensive but had calculated interest daily on full amount over 365 days which equals their charge on the full amount.No reduction for the £360 payment on the 28th of the month i.e The balance was £440 + interest from 28th to 18th (20 days) plus they ADD 28 days interest for early settlement.In short it cost £202 to borrow £800 for 48 days despite repaying in 7 weeks a 52 week loan.Not finished with them yet as I think they have broken the law in charging the interest on the full amount for the full 48 days in spite of the facts as explained above.Will let you know the outcome as soon as I have spoken to someone with an IQ in double figures.FORGET their claim of no hidden charges,plenty of short term lenders who only charge interest on reducing balances without ANY early penalties.AVOID LIKE THE PLAGUE!!!
    • TrickyDicky101
    • By TrickyDicky101 19th Oct 18, 8:53 AM
    • 3,190 Posts
    • 2,101 Thanks
    TrickyDicky101
    Get rid of Satsuma as quick as you can spit out the pips.Must be the worst short term lender ever.I borrowed £800 for a friend for an emergency Vets bill on the 1st of the month,repaid £360 in one sum on the 28th of the month (30 day month btw).Asked for full srttlement figure on 18th of following month and told £662,paid it but queried the amount.Moron on the phone stated "Done by a very complicated system automatically so I can't explain".Knew it was going to be expensive but had calculated interest daily on full amount over 365 days which equals their charge on the full amount.No reduction for the £360 payment on the 28th of the month i.e The balance was £440 + interest from 28th to 18th (20 days) plus they ADD 28 days interest for early settlement.In short it cost £202 to borrow £800 for 48 days despite repaying in 7 weeks a 52 week loan.Not finished with them yet as I think they have broken the law in charging the interest on the full amount for the full 48 days in spite of the facts as explained above.Will let you know the outcome as soon as I have spoken to someone with an IQ in double figures.FORGET their claim of no hidden charges,plenty of short term lenders who only charge interest on reducing balances without ANY early penalties.AVOID LIKE THE PLAGUE!!!
    Originally posted by Tobyglen
    What was your interest rate? If it was about 390% APR then the figures you have quoted for early settlement look about right to me. That is assuming the early settlement interest is indeed 28 days and not 58.
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