Loans

[markieboy]

Do we as honest citizens have any recourse or way of warning others about loans that make you feel you have been had. Do loan companies have to make you aware of any loan where the interest added is greater than the monthly payment made to clear it?

[Oneeyedvic]

Not sure I understand - are you talking about a normal fixed rate loan, or a credit card, or something else?

[Loosehead]

You mean the monthly payment doesn't cover the interest so the amount outstanding grows indefiniately?

Obviously from some sort of loan sharking outfit. Why would you contemplate such a thing? Surely they told you how much you had to pay and the interest rate, from that you can easily see if your payments are covering the interest.

I'm afraid the borrower must take responsibility for what they are getting into. Warn people by all means but most wouldn't entertain a loan of which you speak.

Try one of these reverse loans, work out how much you can afford each month, call that x, let's call how much you want to "borrow" y. So all you do is save x until you have y, simple 0% apr.

[ianess]

In theory, a credit card could charge 1.5% per month on say a �1000 loan and if your minimum payment was 2% per month you would be paying �20 of which �15 would be interest, with only �5 going to reduce the debt.
It's all in the [very] small print.     Take care.