Personal Loan Question

[DrewChan]

Bonus time at work and I finally have money to pay off the last of my debt. First time completely debt free in close to 8 years.

Investigating a Personal Loan

Took out a loan in November 2013, payable monthly from December 2013.

Interest rate 31% (Yes I should never have taken it, but hindsight n all that)

Admin fees etc etc added on the loan amount came to 14140 over 36 months.

Payment per month 602.00
Minus Admin plus insurace R124.
Minus Interest.

If I paid from December 2013 to date [14 Payments] and made 2 manual payments of R300 a piece [600]

What should the outstanding balance be?

602 * 14 Payments - R8442
300 * 2 Payments - R600
Minus Admin 124 * 14 - R1736

Total Paid: R9042 - R1736 Admin + Insurance
R7306.

What should my cumulative interest be. IE how much should come off the capital of R14140

 

[AlmightyBender]

You will need to tell us the term of the loan to do this calculation. Then you can generate an amortization table which will tell you where you are. Alternatively you can just ask your loan provider for a statement and that will very clearly tell you your outstanding balance?

PS: Well done!

 

[DrewChan]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

 

[TelkomUseless]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

WTF.. that is insane!!!

 

[Rocket-Boy]

Personal loans are hell.
I know in the past some banks penalized you for settling early, but not sure how that changed with the credit act.

 

[Pho3nix]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

:wtf:

 

[DrewChan]

There is apparently still one

Outstanding amount: R10800
Settlement amount: R11400

 

[Sinbad]

31% interest rate... dear god.

 

[Sinbad]

Personal loans are hell.
I know in the past some banks penalized you for settling early, but not sure how that changed with the credit act.

Small loan, no early settlement penalty.

 

[DrewChan]

All debt paid, may you never again rear your ugly head

 

[DrewChan]

Small loan, no early settlement penalty.

Then where did the R600 come from

 

[Sinbad]

Then where did the R600 come from

Probably interest accrued since the last interest entry on the account.

 

[marco79]

I'm not a finance fundi, but the problem lies with your R300 payments. If your first R300 + R300 was paid before the initial payment date, you would've been ok. But if you paid R300 when the first R600 was due, then the loan company would add interest on your overdue balance.

 

[DrewChan]

Interest is charged at R302 per month on average as per statement, they probably have some stupid additional admin fees.

 

[Sinbad]

I'm not a finance fundi, but the problem lies with your R300 payments. If your first R300 + R300 was paid before the initial payment date, you would've been ok. But if you paid R300 when the first R600 was due, then the loan company would add interest on your overdue balance.

Yeah not so much. There was no overdue balance.

 

[Sinbad]

Interest is charged at R302 per month on average as per statement, they probably have some stupid additional admin fees.

Ask them then. Pretty sure that's not allowed.

 

[Ho3n3r]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

I paid about 90 000 on my homeloan thus far, and it has deducted something like 5k.

That's the way it works unfortunately.

 

[yebocan]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

Double :wtf:

 

[Pitbull]

36 Months

It says I still owe 11800.

Off of R13000

After paying R9000

Fuuuuuuuu

Jeesus that is insane.

You need to pay that off ASAP. Find out what the settlement is and just pay it in one big chunk.

 

[Pitbull]

I paid about 90 000 on my homeloan thus far, and it has deducted something like 5k.

That's the way it works unfortunately.

Your homeloan term isn't 36 months though