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Thread ID: 39342	2003-11-04 00:17:00	OT: Hirepurchases and Interest rates	csinclair83 (200)	Press F1

Post ID	Timestamp	Content	User
189006	2003-11-04 21:49:00	i dont think paying it early would affect mine as this is my 4th..god bless me...hirepurchase and i have a telecom account and power...so yeah...stuff one of those my credit dies for 6 years...if thats what happens when u get bad debt...bad credit for 6 years isnt it?	csinclair83 (200)
189007	2003-11-04 23:30:00	Well the power and phone is actually a small thorn, paying those off whenever they come in isn't going to tell the bank that they should lend you $50k	Kame (312)
189008	2003-11-05 00:46:00	true thats true but it tells them that your reliable with paying ur dues on time...i know telecom is a "small" price compared to 50k from the bank... was there ever a time when you only could spend what you earnt? no hirepurchases no loans no crap?	csinclair83 (200)
189009	2003-11-05 09:11:00	Ok lets get this sorted. The advice posted is generally correct but needs clarification. For our purposes there are two types of loan: 1 Table loan 2 Rule of 78 loan Mortgages are normally table loans (except for interest only loans). Table payments consist of interest and principal with the main component being interest for the first 60% of payments (approx). Normally you can repay a table loan at an earlier date and the interest due stops at that moment. Thus you save money. Penalties are normally only imposed in the case of fixed rate interest periods. However your local finance company didn't get to be a finance company by giving away interest. Oh no. Under the Hire Purchase Act they are able to apply the Rule of 78 which means that if you repay halfway through the period, you end up paying 3/4 (say) of the interest. The calculations are in the Act. Anyway have a look at www.tiac.net/~mabaker/rule_of_78.html If you cannot avoid borrowing money,try your bank. They do not apply this pernicious rule. Cheers Winston001	Winston001 (3612)
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