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Can someone please explain interest to me?

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penny_e
Established Member

Can someone please explain interest to me?

I am paying on a judgement to suttle hammer & white. I have a balance of 3055.92 when I agreed to make 50 a month payments, made 2 payment and balance is 3000.92 so is it 25 a month in interest? He said its 9% annual....I am confused Thank you.

VICTORIA SECRET $850 MERRICK BANK $950 WALMART $600 AMAZON STORE $800 CAPITAL ONE QUICKSILVER $1500 CAPITAL ONE PLATINUM $800
Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Can someone please explain interest to me?

Sounds about right. 9% of $3055.92 is $275.03. $275.03 divided by 12 months is $22.92 per month in interest. 

 

As you pay the balance down, your dollar amount in interest will also go down.

Message 2 of 8
Anonymous
Not applicable

Re: Can someone please explain interest to me?


@penny_e wrote:

I am paying on a judgement to suttle hammer & white. I have a balance of 3055.92 when I agreed to make 50 a month payments, made 2 payment and balance is 3000.92 so is it 25 a month in interest? He said its 9% annual....I am confused Thank you.


At $50 a month, you will be paying for 6 years (72 months).  The total amount of interest you will pay is around $485.   If you use Excel or you can just Google a Loan Amortization schedule and it will show you how much of your payment is going to interest and how much is going to the principal each month.

Message 3 of 8
Anonymous
Not applicable

Re: Can someone please explain interest to me?

I come up with 82 payments and around $1060 in interest given your figures http://m.free-online-calculator-use.com/missing-term-loan-calculator.html

The interest is front loaded or "amortized" into your loan. So payments made early on the loan are mostly interest, payments made in the back are mostly principal. This is the reason that paying off such a loan early saves you money. Like adding an extra $100 principle payment on your house or setting up bi weekly payments to throw extra money at the loan Principe. http://www.investopedia.com/articles/personal-finance/061615/how-interest-rates-work-car-loans.asp
Message 4 of 8
Anonymous
Not applicable

Re: Can someone please explain interest to me?

http://www.amortization-calc.com/ plug your numbers into this and it might make more sense.
Message 5 of 8
Anonymous
Not applicable

Re: Can someone please explain interest to me?

I swear I mean no offense and I'm not trying to be a wise guy

But in addition to the suggestions here, you can just Google any loan calculator and plug in the numbers, no doubt

However, to 'understand' the concept of % you have got to slow down, play attention and really nail down how this thing works

It's too important to be involved with credit and financial issues and not have a decent understanding on how % works... again no offense but this leads to judgements and misunderstandings and defaults

Because ppl haven't a better clue what they are signing up for...trust me I get it, our culture skips over the DETAILS

When adults walk around in a daze, to how life works.

Luckily, today there are forums like this FREE access on YouTube and others...where if a person wants to do more than cry about it and claim victim hood
One can educate themselves and fill I'm some holes
Because some basic knowledge has to be obtained to get more meaningful assistance

Or folks can watch cat videos and become Pokemon Go experts.... it's a choice😉

I swear my position is to help and sometimes a question is so scarily basic , we'd be eff'd up to not suggest that possibly a person needs to build a basic solid foundation because without one... we're sending blind mice into a cat house with no protection or context, and I just can't sleep with that.

If the OP doesn't need the extra concern fine, my bad but some questions raise a flag of concern.

Had the ? been how to calculate or is this right?
But a flat out how does it WORK, period...cries 'I need more than just a table or a chart...I need basics om how this ish works, period

I may have read it wrong or the OP may have written it, a bit different from what they meant but as written means wth is THIS?
Message 6 of 8
Anonymous
Not applicable

Re: Can someone please explain interest to me?

Clearly the OP decided to post their question here to learn and better their understanding.  I don't see how the lengthy post above adds any value at all or serves to do anything other than make the OP feel belittled when all they are doing is asking for help.  When the vibe around here should be "there are no dumb questions" your post essentially points the finger and says "that was a dumb question."  That's how I perceive it anyway, so I wouldn't be surprised if the OP did as well.

Message 7 of 8
susieqj
Regular Contributor

Re: Can someone please explain interest to me?

When someone starts off by saying "I swear I mean no offense and I'm not trying to be a wise guy” You know the post is not going to add any value. OP I hope you got the answer you were looking for and you and others are not discouraged. We are all here seeking advice and to help each other and sometimes it is a simple congratulation.  This forum has no place for insults. I wish you good luck.

 

Message 8 of 8
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