Accidentally borrowing ten-thousand pounds...
Discussion
I've reached the end of my limited fiscal knowledge regarding a close friend who has "accidentally" borrowed £10,000.
(I know, I know, I also did a face-palm...)
So, this chap has a very young family and a history of money mismanagement, but is an intelligent and hardworking fella too. He took a loan out on 1st August, as a bit of a knee-jerk reaction to his dwindling working hours and the birth of his second child. He's way past the 14 days "cooling off" period, obviously, but he's now regretting the loan because things aren't as bad as he thought in his state of post natal panic.
The loan company have given him a settlement figure of circa £11,000, but the loan was "sold" as one with no early repayment penalties, and I vaguely recall reading somewhere that when you pay back a loan early, interest can only be charged for the time the loan ran for
Have I remembered wrongly?
Is there any further advice I can pass on?
I don't think he was "miss-sold" the loan in any way, shape or form (and neither does he) but I don't want him to be stuck if there's a way out.
I have, for the record, informed him that he is a complete plum.
I recently paid off a loan, so think I can help here.
My "settlement figure" was £11k, yet I worked it out to be around £10.5k I rang them up to question their calcs, and they said "Yes, that is the figure, however you get a interest rebate once the account is closed".
A week after closing, I got a rebate of £600.
My "settlement figure" was £11k, yet I worked it out to be around £10.5k I rang them up to question their calcs, and they said "Yes, that is the figure, however you get a interest rebate once the account is closed".
A week after closing, I got a rebate of £600.
I'm not sure I understand the complexity of a rebate...?
What struck me as being quite harsh, was that despite the fact he's only actually borrowed the cash for a few weeks, they seem to be requiring him to pay the interest on the full term. Although if that's the penalty for not looking before you leap, such is life.
Sheepshanks said:
Never thought about this before but I wonder how lenders deal with the fact that the Settlement figure is a moving target?
When I spoke to my PL provider last month they provided a couple:Figure 1 is valid up until the end of the current month, if no payment is made
Figure 2 is valid up until the end of the current month, if payment is made (obviously lower than figure 1)
Sterillium said:
I've reached the end of my limited fiscal knowledge regarding a close friend who has "accidentally" borrowed £10,000.
(I know, I know, I also did a face-palm...)
So, this chap has a very young family and a history of money mismanagement, but is an intelligent and hardworking fella too. He took a loan out on 1st August, as a bit of a knee-jerk reaction to his dwindling working hours and the birth of his second child. He's way past the 14 days "cooling off" period, obviously, but he's now regretting the loan because things aren't as bad as he thought in his state of post natal panic....
Human beings will never cease to amaze me....(I know, I know, I also did a face-palm...)
So, this chap has a very young family and a history of money mismanagement, but is an intelligent and hardworking fella too. He took a loan out on 1st August, as a bit of a knee-jerk reaction to his dwindling working hours and the birth of his second child. He's way past the 14 days "cooling off" period, obviously, but he's now regretting the loan because things aren't as bad as he thought in his state of post natal panic....
I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
MC Bodge said:
Human beings will never cease to amaze me....
I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
I think a moment of panic brought his intelligence down to almost zero for a few moments... I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
Sterillium said:
MC Bodge said:
Human beings will never cease to amaze me....
I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
I think a moment of panic brought his intelligence down to almost zero for a few moments... I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
MC Bodge said:
Human beings will never cease to amaze me....
I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
Don’t be a smart arse without knowing the situation. I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
Maybe he has bonds maturing shortly?
Maybe he’s selling an asset, and this it to tie him over?
Maybe he’s about to receive inheritance shortly?
Don’t pass judgment without knowing full situation.
FukeLreeman said:
MC Bodge said:
Human beings will never cease to amaze me....
I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
Don’t be a smart arse without knowing the situation. I'm intrigued by what he thought borrowing that money was going to do to help him, given that his ability to pay it off was presumably diminishing. Is suppose that "intelligence" could be measured in different ways.
Maybe he has bonds maturing shortly?
Maybe he’s selling an asset, and this it to tie him over?
Maybe he’s about to receive inheritance shortly?
Don’t pass judgment without knowing full situation.
It's not being a smart arse. I would be very surprised if any of the scenarios that you propose were the case.
As far as I know, it was simply panic... he's had a lot to contend with in life and strives to be the best father he can be. He's a truly wonderful father and a brilliant human being to boot. I think he wanted an instant "nest egg" in case he ever found himself in a position where he couldn't support his family... and under the pressures of imminent childbirth, made a decision that was more rash than he later realised.
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