Stop unsecured loan interest charges?
hi, i have recently started a debt management plan with a reputable company who do not charge for the service. now on my budget i can repay a total of 131 per month. i have quite a few small debts but 1 big one. the inital problem was too many small debts wanting too much at once, hence the dmp. i have just received a statement from my big loan company who get 72 per month initially my agreed payment was 322 . i assumed my interest would be frozen but it appears i am wrong. they are charging me around 270 interest per month. so basically im paying 72 but having at least 270 put on each month. my initial statement said that in november i owed 8000 ish and now owe over 10,000. i dont know what to do. a dmp is useless as i will never be debt free any suggestions on how to deal with this? thanks
Unsecured loan interest rate?
I have been approached by a friend for a loan of less than 10K for their business. The loan period is 6 months. This is an unsecured loan. My friend is asking me what I would require for an interest rate. How do I determine what a fair APR would be? There's no need to consider a " sweetheart" deal for me or my friend... just something that would be standard.
Unsecured loan, interest rate question?
I need some clarification of a consumer loan agreement that was offered by my bank to sign. It states that it is 18 % per annum in certain sections, but under the truth in lending disclosure section it says the cost the credit will cost me at a yearly rate is 26.345 %....Why are these different? As I read through the agreement it stated the 18 % was fixed. I see nothing explaining the 26.345 %. It is not a big deal since I signed it already and it is only for 500 dollars, but any clarification on this for the future would be helpful as to why there are two different interest rates. Other loans I have taken out have always just mentioned one interest rate in the consuer loan agreement.i was doing some more research and there was a processing fee for this loan. Would the reason the interest rate under the truth of lending section is higher is because they have to classify and include this in that? So, what I mean is, is the interest rate actually 18 percent, but when you tack on the processing fee the true cost over the life of the loan would actually be 26.345 percent and that why its under the truth in lending section. Do I understand this correctly?
