I took a personal unsecured loan out for $7000 almost two years ago (22 months). My current balance is $3337. It grows interest daily and adds $2.00 a day. My interest rate is 11.49. When will it stop adding to the principal daily?
DEBS: When you pay it off. Look to transfer it to a better loan.
It never does
interest is calculated on the amount you still owe
the payments you make include the interest + some of the amount you still owe (so this will gradually decrease)
Since the amount you owe decreases with each payment then the interest decreases
result is- your payments includes less and less interest, and more and more capital
THIS means that the amount you owe dont go down much in early repayments, but rapidly decreases as you get near the end of the loan period
So last payment will be 99% money owed and 1% interest, so that when its paid you will owe nothing
(dont know if they are legal but the WORST loans are where interest is "front end loaded"
in this case ALL the interest you would pay over the entire loan period is calculated and this is paid off 1st before any capital is repaid
THIS means that say the 1st 1/4 of payments are ONLY interest
So if you wanna pay back the loan after this period you STILL owe the whole amount borrowed cos all you have done is pay back interest with your payments)
Too much interest. Im assuming its one of those sub prime loan deals… those are the WORST… they end up doubling the amount you owe… If your paying more interest then you are for the loan… you need to think about whats going on in your credit situation which would make you have to reach out for those kind of loans…
Once you pay the loan off, retard! Pay it off!
Do not take out a loan unless you have a clear plan to pay the loan off.
For example, I might take out a loan, just so I can sell my car. But once I sell my car,
you were given a schedule to repay the loan which obviously you have not done, this is bad for your credit score and will probably result in repaying far more than the original interest when you took it out
pay more each time you pay to get it reduced until you have it paid off, the only way to eliminate more being added
Faircent's customer service was prompt in responding to online inquiries, keeping me up to date on my application status, and always extremely competent. The only reason for a 4-star rating instead of 5 is that I could have used more thorough explanation of the company's security measures when I asked about them, and there was always an echo on the phone line, no matter the day or representative. I would highly recommend Faircent to friends and family.
Your interest charge should be much closer to $1.11 a day (unless you signed a rotten loan agreement).
when you pay it off totally