12% interest on Credit union

5Times said:
I borrowed 40k and according to the contacts when im finished paying I will have paid back 79k in total.
5times
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That sounds completely off. You're saying that you have to pay back altogether over double what you borrowed. no way.
 
I'll upload it here tomorrow with all the personal details blanked out, and we'll see if im wrong, which I could be !
 
40,000 borrowed at 640 per month over 7.58 years:

total repayment 57,976.86

total interest 17,976.86


I went onto a credit union website and this is what I got off their calculator

it might help
 
Margie, I think I used the same calculator you just did? It is way out though as they say something like 10.4%, infact it shows I would be paying 400 per month instead of 600.
 
5Times said:
Whats a reducing balance?? I borrowed 40k and according to the contacts when im finished paying I will have paid back 79k in total. Am i insane or is this normal.

5times
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Over how many years? See earlier posts for guesstimates as to your rate based on an assumed term of 8 years.
 
gotsomenow said:
Margie, I think I used the same calculator you just did? It is way out though as they say something like 10.4%, infact it shows I would be paying 400 per month instead of 600.
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Misleading info from the CU? Surely not! I'm sure that the also give out loans to anybody who asks unlike the evil banks...
 
Banks are cold and impersonal and often very frustrating to deal with.
Credit unions more friendly, definately a better service. Being able to borrow 3 times your savings is a good solid foundation for a loan,with your savings acting as a cushion for your debt. You're also paid a dividend on your savings at the end of the year. However I dont think borrowing 40k from C. union makes sound financial sense at 12%? They're good for small amounts around xmas, holidays etc. My son was surprised however when he was taking out a small loan when he was asked to nominate someone
to leave his money to if he dies....He says...I'd rather not answer that thanks very much!!! Anyway, their interest rates are a bit on the high side, but you'll always have your savings, and at least get to know someone there. The staff are always changing at my local BOI. Not surprised, as they are just paper pushers.
 
Elphaba said:
Banks are cold and impersonal and often very frustrating to deal with.
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Not in my experience.
Credit unions more friendly, definately a better service.

...

Anyway, their interest rates are a bit on the high side, but you'll always have your savings, and at least get to know someone there.
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Fair enough if some people want to pay over the odds just to be greeted by a smiling face or to make friends but the least they could do is to avoid recommending it as some sort of generally prudent strategy for the majority.

By the way - I have banked with PTSB for probably 15 years now but have only needed to visit the branch office about once in each of those years. While I had my mortgage with EBS I probably visited them about once a year for 6-7 years. I don't really notice who has come or gone and don't really care to be honest.
 
The point is that you have found a bank, PTSB, that provide you a good service and I am sure that there are people that will also sing the praises of AIB or BOI. Some people like the credit union and for some people it is the cheapest form of credit available. People should evaluate all the criteria...cost, service, flexibility, product offering etc when purchasing financial services. After adequate research, a person deciding to use the credit union does not automatically make them a person that is 'paying over the odds'
 
ontour said:
The point is that you have found a bank, PTSB, that provide you a good service and I am sure that there are people that will also sing the praises of AIB or BOI.
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I was not "singing the praises" of PTSB. I'm happy enough with them though.
 
Let's see what sort of good value CUs offer their members
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It seems that CU's will only act as recruiting sergeants for Eagle Star qualified financial consultant introductions. PRSA's are to be offered to CU members on a no commission basis.
Commissions would arise if "protection products" are sold!
 
Fair enough if some people want to pay over the odds just to be greeted by a smiling face or to make friends but the least they could do is to avoid recommending it as some sort of generally prudent strategy for the majority.

Its called customer service! You make me sound like a sad loser, who shops for friends and loans, holding a placard for the CU. 12% on a loan of
1200 with 400 in savings isn't a big deal. Just cause you make rare appearances at your bank, doesn't mean that there is not a need/demand for good one on one service in banks.
 
Margie said:
i was simply making the point that they are far more fair with the ordinary person than the bank.

i have never experienced any troubly with the credit union and obviously i wasn't suggesting that people should get top up after top up. You need to borrow wisely and as with any loan you need to have a good head on your shoulders.

i also think that people who have had a bad credit history and are now trying their best to get back on their feet deserve a chance.
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I agree. The interest rate I pay in my cu is higher that Tesco etc but I love the fact that I can pay different amounts whenever I choose. At the moment I'm paying it off at almost twice the required amount to clear it quicker. I have a very good track record with mine and have had no problems getting loans. It's worth it to me to pay that little bit extra. My cu is 8.9%.
 
jake108 said:
The interest rate I pay in my cu is higher that Tesco etc but I love the fact that I can pay different amounts whenever I choose. At the moment I'm paying it off at almost twice the required amount to clear it quicker.
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You can make additional early repayments for any variable rate bank loan, and even some fixed rate loans (including Tesco).
 
RainyDay said:
You can make additional early repayments for any variable rate bank loan, and even some fixed rate loans (including Tesco).
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I'm very aware of that but you can't choose how much you want to pay from month to month. CU's are extremely flexible.
 
jake108 said:
you can't choose how much you want to pay from month to month.
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Yes, you can - with just a little bit of forward planning. Negotiate your loan for the minimum repayment that you are going to be able to make, and top this up with additional payments as suits your budget.
 
Credit Union Loans and Interest Rates

I am about to buy a second-hand car up in the 00's - I applied to my CU to borrow 10 grand (about as much as I can ask for based on my shares) and that's only for a '01 or '02 car at a push! They are quoting 8.9% interest meaning I'd have to pay back 55euro a week. I borrowed from them before in 2001 and paid off entire loan within months. I am already paying off a loan with Bank of Ireland because I managed to get overdrawn and so I didn't like to ask them for another loan! I find it embarrassing enough to have gone into the red and to ask for a loan for rescue! I read Margie's comments about the CU and found them reassuring. Are they the best ones to stick with? or is it better to go for car finance with a car dealer? My man was encouraging me to borrow 10 grand out of the CU straightaway (some of it cash) so I'd be in a better position to buy a car if I spotted one at the weekend.
 
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