I want to make an early settlement of a loan I took out. When I asked the loan company in March 2019 what the settlement figure would be they said £1,188.50 but the early settlement figure in October 2018 was £1,184.75. I don't understand how the figure has gone up slightly despite making my monthly payments on time, total of £1359.36 in 6 months. The loan company told me they use a formula given by a financial authority (not sure I believe this and will follow up the legitimacy of the claim at a later date) and they shared an image of the formula. I don't understand anything it is saying. Can anyone please help?
I know the APR is extremely high, I was desperate and looks like I will regret it. I just don't understand why the early settlement figure remains high even though I am not even half way through the term of the agreement, shouldn't the discount for early repayment be greater? If anyone can help me to understand the formula they use to calculate the amount of rebate I would really appreciate it. I know its a huge ask. Thanks, Jane
Initial loan amount
Duration of agreement
Annual Percentage Rate of Charge (APR)
Monthly repayment amount
95.3 KB Views: 6