I've been approved for a 3500 loan over 4 years with 39.5% yearly interest. is this way too high, or acceptably high, since my credit history stinks and i'm surprised i even got approved.
how much over all interest am i paying?
i'm told i can pay it off early with no penalties if this makes a difference.
thanks for the help.
2007-09-06 17:04:58 · 5 answers · asked by thing4reason 2 in Business & Finance ➔ Credit
Your payment of $146 will equal $7011 with a total of $3511 interest and more than doubles the loan.
However, if you paid the loan off in 1 year or 12 payments of $358 you would pay a total of $793 interest .
2007-09-06 17:40:48 · answer #1 · answered by Sin nombre 6 · 0⤊ 0⤋
Yikes! That interest rate is worse than a credit card! You'd be better off getting a new credit card with an APR around 22% and finance your purchase that way. But everybody knows you should never carry debt on a credit card, or else you'll be in debt forever.
By the way, consider this:
Year 1: $3500 + 39.5% = $4882
To pay this off you'd have to make some pretty hefty monthly payments. You're better off just saving your money for a few months and pay for the whole thing in cash. Seriously, based on what your monthly payments would be anyway, it should only take a few months to save up enough cash. Why bother spending the next few years paying thousands in interest?
2007-09-06 17:34:09 · answer #2 · answered by hmmm... 3 · 0⤊ 0⤋
Well the interest rate is a little better than a payday loan. Why do you need this money so desperately that you would agree to such an interest rate?
It sure seems that you are living way beyond your means. Instead of taking on more debt, you should re-think your spending habits. Put yourself on a budget and payoff your debts.
2007-09-06 17:46:57 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
Lady this is like a loan shark. Your monthly interest will be around $140.00. If you pay only the minimum it will take you twenty years to pay it off. Don't fool yourself that you will be able to pay it off, from your credit history it indicates that you will not pay it off.
2007-09-06 17:21:35 · answer #4 · answered by Goodhead 3 · 0⤊ 0⤋
This is called a loan shark loan. Are you taking it from local mafia don or a bank? Do they have any provision for breaking your kneecaps if you don't pay on time.
2007-09-06 17:16:49 · answer #5 · answered by Akbar B 6 · 1⤊ 0⤋