interest on loan

[rich8888]

took out a loan and a year into the agreement I ran into trouble financially and I was unable to make the payments to the point where the company obtained a county court judgement. The judgement was obtained and an agreement was made that I could afford to pay back (the same amount as before as I found employment and was able to make payments again)

What I want to know will interest gather on the balance like before, or now that judgement has been obtained I will just pay the balance back. Please advise

[factor-fiction]

I see you have posted this in two places. Doesn't the judgment/agreement specify the terms? I can't see why you should escape interest payments

[bednobs]

as far as i'm aware, when you take out a loan, the interest payments are added to the total amount owed and then split up into the monthly payments.
Therefore if you borrowed (say) £1000 over 10 months plus interest was £100 the monthly payments would be £110 (so both payng some interest and some capital each month)
If the payments are the same, it would make sense that you are still paying the interest. In the absence of your judgement making it clear, i wouldn't be surprised if they added more interest on for the time you weren't paying too

[rich8888]

I'm only paying the same amount because that is what i suggested. I could have said I'll much less and they would have accepted it. I will try and find a copy of the judgement to clarify but a lot of people have said once the judgement is obtained they can only claim for that amount and no interest on top unless they make another claim for the interest?

[another-view]

Nonsense, otherwise everyone would do this. You took out a loan on terms you agreed to. Now you must pay it back.

[jackthehat]

I believe that once the judgement is made, the interest is frozen on that amount. The interest you should have paid ought to have been calculated IN the judgement, however, the judgement will remain a fixed amount accruing no interest itself.

[rich8888]

see what I mean? Confilicting answers, however Jack the hats answer is what I have been advised by quite a few people.

[rich8888]

And everyone does not do this because 99% of poeple do not want CCJ on the credit file for 6 years.

[another-view]

Surely that would depend on the amount of the loan. If I were to take a loan out for say £50,000 over 6 years, it would be worth considering doing this for an interest free loan.

Probably best to pop into CAB for a definitive answer.