Tom J
Organiser: South Wales
Premium Member
Registered: 8th Sep 03
Location: Bridgend
User status: Offline
|
Loan amount £1000.00
Term 12
Initial repayment £90.91
Subsequent monthly repayments £90.97
Total amount repayable £1091.58
APR 17.8%
Flat rate 9.158%
what does it all mean? i dont understand how the apr is 17.8 percent, and yet i only pay £91 extra on top of what i borrow, any1 explain?
|
Adam-D
Member
Registered: 11th May 02
Location: Cheshire
User status: Offline
|
i read it i dont fully understand it
|
--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
User status: Offline
|
www.goldfish.com
thats where i got my loan from for 5k. Fully recommended
|
Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Online
|
APR 17.5% 
Whos that with? Your being ripped off.
Cahoot are doing loans at 5.8%, but are very difficult to obtain. You need a 100% credit rating.
|
Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Online
|
91 quid is the 17.5% intrest you pay on the loan.
|
CorsaLad16v
Member
Registered: 5th Mar 03
Location: Sheffield UK Drives: VW Golf
User status: Offline
|
i work for Norton Finance n i don't have a clue 
is that bad?
|
Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Online
|
quote:
Originally posted by CorsaLad16v
i work for Norton Finance n i don't have a clue
is that bad?
Yes that is very bad.
|
KelSE2
Member
Registered: 12th Mar 04
Location: Wirral, Merseyside
User status: Offline
|
Interest of £91.58 on £1000 over 12 months is a flat rate of 9.158%. But because you are paying back the money over the year, the amount of interest you pay should drop as the months pass (to stay at the same rate). Because each payment is the same, you are actually paying a higher proportion of interest each month. To make things legal, they have to quote the APR (annual percentage rate) which is what it would work out at if you took into account that you owe less as the months pass(so you actually pay at a higher rate each month than the 9.158 you started at.
Hope that makes some sense.
|
Adam-D
Member
Registered: 11th May 02
Location: Cheshire
User status: Offline
|
^^ yeah i sorta got that 
|
M2RTY
Member
Registered: 25th May 01
User status: Offline
|
thats why everyone in the country is in so much debt, no1 has a clue how much they are actually going to pay back untill its too late
|
MoNkEy MaGiC
Member
Registered: 12th Apr 03
Location: West - London Drives: Corsa GSi
User status: Offline
|
on the subject of APR ratings!!!!
on my platinum card the purchase apr is 14.9% and the cash apr is 19.9%
ive got about £2200 on it within one month, and i worked it out to being roughly £27 interest per month... got my first statement and its about £43!!!!!!!
i worked it out like this 14.9% of £2200= £327.8 divided by 12 months = £27.31 monthly interest??
wtf happend, wat i work out wrong??
and is the cash Apr 19.9% worked out seperatly?? 
damn credit cards
[Edited on 08-07-2004 by MoNkEy MaGiC]
|
KelSE2
Member
Registered: 12th Mar 04
Location: Wirral, Merseyside
User status: Offline
|
You buy something in the middle of the month for £200, and then a statement at the end of the month gives you a balance of £200. You pay off £100, leaving a balance of £100. When your next statement arrives the £100 has 6 weeks interest (from the date of purchase til the statement date), not the one month you expected. Even if you pay the £100 off that month, they still charge interest from the statement date until they receive your payment, so next month they give you a bill for another week or so's interest. The only real answer to this is pay off your credit card in full each month - that way they don't charge interest
|
