How do i calculate interest on reducing balance?

[007coot]

Hi,

 

I have a secured loan with paragon, been paying it for 7 years and so far they have charged me over £36k in interest and I have paid £39K so far. My debt has only reduced by £2,800. I want to do a spreadsheet so i can try and work out how my balance will reduce over the years, I know interest rate may change but I just want an idea of how the payments will start to reduce my balacne becasue at the moment I see no light at the end of the tunnel! This should be a 300 month term and I can't see it'll get paid off in time if over 7 years I've only cleared £2,800 off balance. I thought it might help if I culd put my payments in up until end date of July 2030 and use current interest rate just to see if it does look any better and make things a bit clearer for me. Then it should give me some hope!

 

I called paragon and raised my concerns but they just said as long as I paid my monthly payments on time it would be clear by the end of the 300 months but I can't get my head around it.

 

Any ideas how I can do a spreadsheet please on excel?

 

Thanks in advance!

[007coot]

sorry to add the loan was for £46k and I still owe £43K after 7 years

[ims21]

What is the amount of the monthly payment please?

[007coot]

Hi Ims I pay 482.84 per month, they charge me aprrox £422 in interest and my current rate is 11.772

 

Thanks x

[ims21]

OK use this spreadsheet

 

Enter the three bits of information at the top and it will give you some idea of how a loan progresses over time.

 

Not that in the early years you pay a very small amount of capital off the loan but a lot in interest. In the later years that trend is reversed.

 

Hope this helps

 

ims

 

LoanAnalysis.xls

[007coot]

Thaks Ims, I was asking Paragon if I pay mainly interest first but she just didn't understand me, Thaks so much, I feel much better now you've said that. I really appreciate your help.

 

P.s hope you read my message on my other post reminding you how amazing you are too lol, it's not just dx that gets my praises hehe!

[ims21]

Aw shucks

[007coot]

spreadsheet is fantastic, thank Ims, can't wait to show my husband when he gets home from the Olympics, it will be a great weight off our shoulders because we can see now how it will reduce. Thank you so so much!

[ims21]