Borrowing at 40% to buy a laptop

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SDMXTWO

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I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working.

"The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. The borrowing rate is also 39.9% variable. Interest is calculated on the daily current balance and the compounded interest is applied to the account at the end of every monthly statement period. As a representative example, if you are given a credit limit of €350 and then use your new account to buy a single item for €200 and make the minimum payment each month of 10% (or €10 if greater), the total amount payable will be €256.77, spread over 22 payments."

So...can someone work out what my repayments would be please on a purchase of 1500€. Thanks.
 
Well if €200 is €11.67 a month for 22 months, then €1,500 night be €88 a month for 22 months for a total of €1,926.

Or another way, the average balance os will be €750 plus interest at 40% for 22 months is €550 so total €2,050, or €93 month for 22 months.

So not too far from €90 a month for 22 months and around €2,000 total repayments.

Note. These are very much approximations/guesses.
 
SDMXTWO said:
So...can someone work out what my repayments would be please on a purchase of 1500€
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This sounds like a credit card and not a loan so there won't be a fixed monthly payment. There is usually some minimum monthly payment required so really its up to you how much you pay above this. And the lower your monthly payment, the longer you are borrowing the money and the more interest you pay

At 39.9% it would be mad to borrow €1500 unless it is absolutely essential. Have you any other alternatives?

But if you are really intent on it, it would be easier to share the product you are actually considering to get better advice
 
cremeegg said:
Well if €200 is €11.67 a month for 22 months, then €1,500 night be €88 a month for 22 months for a total of €1,926.

Or another way, the average balance os will be €750 plus interest at 40% for 22 months is €550 so total €2,050, or €93 month for 22 months.

So not too far from €90 a month for 22 months and around €2,000 total repayments.

Note. These are very much approximations/guesses.
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Well thanks for that, does not sound as bad as I thought at approx 250€ extra pa, am I correct on that?
 
_OkGo_ said:
This sounds like a credit card and not a loan so there won't be a fixed monthly payment. There is usually some minimum monthly payment required so really its up to you how much you pay above this. And the lower your monthly payment, the longer you are borrowing the money and the more interest you pay

At 39.9% it would be mad to borrow €1500 unless it is absolutely essential. Have you any other alternatives?

But if you are really intent on it, it would be easier to share the product you are actually considering to get better advice
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When someone say's 'mad' it's a warning. Company is VERY the new Littlewoods.
 
Sounds like a new laptop/no money scenario.
Note that very has inflated prices to begin with,then that eyewatering APR.
As has often been said ,it's very expensive to be poor.
 
SDMXTWO said:
The borrowing rate is also 39.9% variable.
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Not even credit cards are this high. I didn't think this was even legal at this high a rate.

https://mabs.ie/blogs/buy-now-pay-later-mabs-investigates/ said:
Since May 2022, all Buy Now Pay Later providers have to be authorised by the Central Bank of Ireland to operate here.
...
Any company or provider of BNPL services are also subject to an interest rate cap of 23%.
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Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work. As was said expensive being poor, not easy. I'll let it go.
 
SDMXTWO said:
I am looking to open an account with an online company to purchase an item for 1500€. I applied for an acc and got a 400€ credit. I am not working
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Are you sure this isn't a credit limit of €400? i.e. you will not be able to buy €1500 worth of goods on credit


SDMXTWO said:
Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work.
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While this is expensive, a loan to facilitate you earning an income is one of the few good reasons to borrow. A credit union loan or similar would be more suitable for you if you can get it. Or do you have any savings at all?

Maybe start a new thread with the specs of what you are looking for or need. You will almost definitely get it cheaper somewhere other than VERY. Or possibly buy a refurbished PC for much cheaper.
 
SDMXTWO said:
Thanx for the replies, it is extortionate, it is a PC for graphics, was hoping to get back to some freelance work. As was said expensive being poor, not easy. I'll let it go.
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While the cost of credit is very expensive, that is not really the question.

If a €2k pc will allow you to earn an income, it may be a very good buy. The fact that the €2k cost includes €500 interest charge is not really relevant to the decision. If you can get the loan cheaper do, but if the pc is worth €2k to you then don't let the cost of the credit put you off.
 
I cant get the figures to fully line up. It states that you must pay 10% each month. If that is less than a tenner then minimum payment is 10 euro.

It seems that the payments decrease over time but could be pretty heavy at the start for larger loan. Also if the minimum isnt paid off, then further interest will accrue. This would be risky and a very high percentage of social welfare income.

Its also likely that the 1400 is over the odds as they know they have people over a barrel.

Try get any other type of income and spend time sourcing more affordable PC or laptop.

Those rates are scandalous and while its well intentioned you could be in over your head. Social welfare would be approx 10k pa so 2k or more out of that is a huge hit.
 
dubdub123 said:
I cant get the figures to fully line up. It states that you must pay 10% each month. If that is less than a tenner then minimum payment is 10 euro.

It seems that the payments decrease over time but could be pretty heavy at the start for larger loan. Also if the minimum isnt paid off, then further interest will accrue. This would be risky and a very high percentage of social welfare income.

Its also likely that the 1400 is over the odds as they know they have people over a barrel.

Try get any other type of income and spend time sourcing more affordable PC or laptop.

Those rates are scandalous and while its well intentioned you could be in over your head. Social welfare would be approx 10k pa so 2k or more out of that is a huge hit.
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Huge hit. I'll keep you up to date on what happens.
 
ryaner said:
Not even credit cards are this high. I didn't think this was even legal at this high a rate.
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It's perfectly legal.

Moneylender loans - CCPC Consumers

Moneylenders typically lend small amounts of money at a high rate of interest over a short period of time, which means the repayments are high.
www.ccpc.ie www.ccpc.ie
Some shops that offer credit for furniture, electrical or other goods and some catalogue companies may be authorised as moneylenders. This is because they may charge over 23% APR. Under the Central Bank’s Code for Licensed Moneylenders, a moneylender must give you certain information before you take out a loan with them including fees, costs and interest. They must also explain that the loan has a high cost, if the loan has an APR (Annual percentage rate) of 23% or higher.
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