personal loan - which figure to use?

[rickyg33]

When looking at an IVA that includes a personal loan, there are possibly at least 3 ways to consider the debt amount.....

(1) current amount outstanding

(2) figure given to pay up loan in full there and then [usually less than (1) as the loan company has to defer some interest I understand

(3) number of payments outstanding x repayment per month [this would be the highest of these methods

Which one is the 'recommended' method?

rickyg

[Jo Rolland]

To work out how much you owe you need to deduct the payments made from the overall amount payable. It is always what is currently outstanding and not a redemption figure.

[rickyg33]

My advisor has asked for number of payments still outstanding x amount to be paid per month.

This is the bigger of the three methods I'd suggested above.

Surely there's a 'standard' agreed method for this?

[rickyg33]

forgot to add........

If the same rule were applied to credit cards, it would be minimum payment per month x number of minimum payments required to clear the debt. The total would be enormous.

[MelanieGiles]

Various companies calculate account balances in different ways. Please don't assume that the creditor will merely deduct the payments made from the amount borrowed. The safest thinkg is to get a written redemption statement from the creditor concerned.