If someone has a past due loan of $5000 at 18% interest, what would be the total due five years late
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I applied for a $5000 loan when I was working, but became unemployed due to disability, and was unable to pay off the debt. The creditor says the loan was set at 18% interest. Does that mean 18% of $5000 is added each year, or each month? What would be the total amount owed on this loan after five years?
Also, the creditor asked me to sign new loan papers when I fell behind on my payments(for the $5000 loan). According to the creditor, that would combine the original loan, along with late payments ect, and I would start new payments. That way, I would not have a bad payment history with them, and it would look like my payments were on time, assuming I maintained monthly payments as scheduled.
At the time it sounded like a great deal, but I'm not sure. I was very ill, and not thinking clearly. What is the term for that deal they offered me? That is when the interest rate increased to 18%.
If someone has a past due loan of $5000 at 18% interest, what would be the total due five years later?Generally loans are compounded monthly. Meaning that in month 1, you owed $5000. 18% annually is 1.5% monthly. So in month 2, you now owed $5075, adding $75 to your balance for the unpaid interest.
Month 3, your interest charge increases to $76.13. Add that, you now owe $5151.13. Month 4, $77.27 added....
By my financial calculator, you probably owe about $12,216.10 after 60 months of 18% interest and no payments.
If someone has a past due loan of $5000 at 18% interest, what would be the total due five years later?More Related Questions and Answers ...
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