Financial Contact Contd.

[Barley]

If i was to raise a lone to pay off the finacial company would I still have to pay the 19.6% on the whole amount.

[Mrs_Pegasus]

You would have to look at the credit contract you have signed.  There may well be penalties for early redemption of the loan - check the conditions.

[Loosehead]

As Mrs_P says read the contract, if you are lucky you only pay 19.6% for the time you owed the money. Some companies however still use the dreaded rule of 78 to front load their loans with the interest. If you pay it off early you will get a rebate but it is based on a formula and no prizes for guessing who it favours. It won't help you but interestingly enough the rule of 78 is illegal from 1st June.