General Discussions

**audiomad** · 06-24-2010, 08:56 AM

Ok last year I took out a loan of €5950 to buy a car, I had an agreement that I would pay 10.4 % apr on the loan until I missed two payment because I was away and I've been getting letters treating me with court. I paid everything I owed but I was still getting letters from them I have just been on the phone with them and they told me I owe €900 and I have to pay quarterly interest charges that are based on capital I don't get this. I paid more than I owe on the loan €2556 to date which is above the payments because the first 6 months I had an option to pause the loan so I did.

Why am I being charged extra? I had to pay €833 in interest I did not agree too.

€2556 - €833 = €1723 and told I owe €900!!!!

**chrishirst** · 06-24-2010, 09:14 AM

"pausing" a loan usually only pauses your repayments, it does NOT necessarily pause the interest.

"capital" is the initial amount or the amount outstanding, and of course interest is accruing on the capital at the monthly rate.

Miss one month and you are then paying interest on the interest as well.

**audiomad** · 06-24-2010, 02:06 PM

Quote:

Originally Posted by chrishirst

"pausing" a loan usually only pauses your repayments, it does NOT necessarily pause the interest.

"capital" is the initial amount or the amount outstanding, and of course interest is accruing on the capital at the monthly rate.

Miss one month and you are then paying interest on the interest as well.

Thats robbery they can't get away with this can they?

**chrishirst** · 06-24-2010, 04:03 PM

Read the small print and I'm sure you'll find they can.

**lynxus** · 04:18 PM

Yeah paying interest on interest is pretty normal ( Esp, If you miss payments for whatever reason )

Next time you buy a car, find someone who does 0% interest, Theres a lot out there.

So if you end up with hidden charges, They will work out less than you would normally be paying.

Its a nightmare

I just took out a 12k loan for a car 8% apr.

Work sout to be about £750 per year in interest !

But i can pay back quicker and save with no fines. So in a year or two ill probably just pay it off cash.
OR get a credit card with 0% for 12months and pay it off with that, Saving £750.

**Giselle** · 06-24-2010, 04:40 PM

Sorry to hear about your dilemma Barry, but the banks/loan companies are the same here as well, if one can, pay cash whenever possible. If one can read the small print without a magnifying glass or hiring a lawyer to read the small print for you, believe me it's in there, all those extra fees you will be paying if you miss a payment.

Lynxus had a great point as well, I have a credit card from a store (Home Depot) who offers 0% for 12 months on large purchases, I have used this numerous times, always paid this way before the 12 months were up, otherwise you will be hit with all the interest from the time of the purchase if you let this go after the 12 month period, but this has worked for me.

**lynxus** · 06-24-2010, 05:39 PM

Quote:

Originally Posted by Giselle

Lynxus had a great point as well, I have a credit card from a store (Home Depot) who offers 0% for 12 months on large purchases, I have used this numerous times, always paid this way before the 12 months were up, otherwise you will be hit with all the interest from the time of the purchase if you let this go after the 12 month period, but this has worked for me.

Ahhh

The trick here is to go get another Card with 0% on balance transfers.
You can then transfer your credit to the new card, Cancel the old card and still be saving cash..

Theres tricks to be had everywhere.

**chrishirst** · 06-24-2010, 06:21 PM

Most of the companies have put a stop to "card hopping" now.

**Giselle** · 06-24-2010, 09:25 PM

Quote:

Originally Posted by lynxus

Ahhh

The trick here is to go get another Card with 0% on balance transfers.
You can then transfer your credit to the new card, Cancel the old card and still be saving cash..

Theres tricks to be had everywhere.

I have done this a few times also with a two of credit cards, tricks you say, I call it "playing the game or should I say playing their game." One card would be wiped clean, they would send out saying 0% for 12 months, so I would wipe out the other card, so on and so forth.

No more card hopping?? What a shame, such fun and saving money too!

**chrishirst** · 06-25-2010, 08:05 PM

Problem it is such things that helped to bring about the global economic crisis. While you may have been "playing the game" with a few hundred dollars, the banks were playing a similar game with millions and money stopped earning money.

**Giselle** · 06-25-2010, 10:10 PM

So it's all my fault along with others who have caused the global economic crisis because we are "playing the game" with thousands of dollars? No, they just didn't know how to play the game legitimately and honestly. As for Barry, do you think they give a hoot about him, they will drain every once of money out of him, and go to bed every night and sleep quite well.

**Jim Gillum** · 06-26-2010, 02:17 AM

In the US robbing banks is a crime...
But banks robbing customers is not...
Go figure...

**backlinksmaster** · 06-26-2010, 08:13 AM

banks suck you when you take a loan.

**bestseo** · 07-21-2010, 05:38 AM

I don't think all banks suck when they give loan to a person. Just use some rusted banks and ask from other persons used loans of this bank.

**banty_raju123** · 07-21-2010, 05:40 AM

plz send me video tutorial that i can understand easily,i tthink you must send me