topic How do they math? (or, why do some loans not work right?) in General Credit Topics

How do they math? (or, why do some loans not work right?)

Ardecko — Wed, 19 Dec 2018 02:27:34 GMT

I don't want to poo poo in this other member's thread, but I apparently don't understand how some loans don't seem to decrease as they should per an amortization schedule. I'm pretty sure I've seen this before, but it just doesn't make sense, unless it is purposefully(deceptively) some sort of balloon payment/interest magic loan.

In this thread(Warrent in debt help), the OP states:

@Anonymous wrote:
It was for a car I bought in 2010 with 24 percent interest.

@Anonymous wrote:
My original balance was 15000. By 2014 I still owed over 13000 on a 6 year loan.

I punched those values into a random loan amortization calculator I googled, and got this snippet, covering year 1 and 2. The borrower should be under 13k after payment 17, which is clearly not 4 years into the loan.

Note: in no way do I intend to imply that this isn't a crappy interest rate, or that the 13k the calculator says you'd pay in interest isn't obscene.

What gives?

Edit: No, I can't draw a straight line with a pencil, much less a mouse.

Re: How do they math? (or, why do some loans not work right?)

Anonymous — Wed, 19 Dec 2018 02:33:07 GMT

I would say the person in that other thread that referenced those numbers was either misinformed, or some fine print in his loan arguably presented him with some of the worst terms known to man.

Re: How do they math? (or, why do some loans not work right?)

Anonymous — Wed, 19 Dec 2018 03:30:06 GMT

The car was repossessed. So there must of have been many missed payments and late fees during the four years.

Re: How do they math? (or, why do some loans not work right?)

Anonymous — Wed, 19 Dec 2018 04:07:38 GMT

Is that a fact or are you assuming it's the case? It would definitely make sense.

Re: How do they math? (or, why do some loans not work right?)

Anonymous — Wed, 19 Dec 2018 04:16:26 GMT

@Anonymous wrote:
Is that a fact or are you assuming it's the case? It would definitely make sense.

Its a fact:

@Anonymous wrote:
It was for a car I bought in 2010 with 24 percent interest. I made my last payment in October 2014. It was a double payment because I was behind. I was trying to catch up, but they repossessed a few days before Christmas. I was unable to pay it off and they sold it. They sold the debt to NCB Management.
NCB is who is taking me to court. I had them send me all of the paperwork that showed every charge and every payment made for 4 and a half years. My original balance was 15000. By 2014 I still owed over 13000 on a 6 year loan.

Re: How do they math? (or, why do some loans not work right?)

Anonymous — Wed, 19 Dec 2018 04:47:51 GMT

Maybe I misunderstood your question. It's a fact that the car was reprossessed. That there were many missed payments and late fees is speculation on my part.

Re: How do they math? (or, why do some loans not work right?)

Kree — Wed, 19 Dec 2018 14:37:51 GMT

He does mention "every charge" which can be interpreted to mean multiple lates.