I need help, Welcome Finance are killing me!!

choochoonesme

From the top;
In 2006 december I got a flat with my girlfriend and had an agreement that i pay the first months and she do the second, however she quit work and left and I was forced to get a loan in January from Welcome finance as they were the only company who offered me.
All I took out was 1500, to cover all my rent so I could move back in with my parents at 69% interest per annum, (which I knew was steep but had no choice). I also was charged approx £600 on top of this fee for insurrance for example, if i was ill, it would carry on paying, or lost my job etc.
Over the last 2 and a half years, iv had my times where Iv struggled to pay, but still, I have payed them a total of £1962.
I was on no interest as of last year, however because of starting uni and not being able to pay much, they have charged about £300 more interest from the last 12 months. They contacted me in july and assured me if I started paying £40 per month that he (A man named Richard in the Bristol department) would take those charges away. Iv been doing that since july and I pulled him up on it today and he said he could only apply to have those charges taken off.
He lied to me. So that trust has gone.
Now he said I have approx £2040 left to pay.
For a loan I took out of £1500, and have already payed £1962, how can I still owe £2040!
Now my question is, What can I do? I know I signed a contract but it is literally killing me. All I can think about is that and its making me lose weight, not eat etc.
Does the insurance I took out, (the £600ish) is that the PPI, and is that something they cant charge me?
And what can I do about the rest of the payment, is there anyway I can get them, and get this sorted without having to pay anywhere near that.
Any help at all will be much appreciated.

tealady

Hi. Unfortunately Welcome have very high interest rates which is why the debt is high. I would suggest that you contact a free debt advice service to help you sort out your finances. If you are a student there should be someone at the Uni who should be able to help.

LDJ2009

Hi, look into joining your local credit union.

I had to save for 3 months (£10 per month to start) but was then able to apply for a loan at 1% interest per month and you can overpay without penalty.

Every credit union is different with regards to how much you can borrow initially but anything you can pay off the balance to Welcome is a start.

Otherwise, if you don't mind me suggesting it, could you get yourself a part time job for a few months and use the extra money to pay Welcome.

Lots of luck and please pm me if you need an ear

L x

eschaton

If the loan is causing you not to eat, then use the money saved on food towards the loan.

:money::money::money:

vaporate

eschaton wrote: »

If the loan is causing you not to eat, then use the money saved on food towards the loan.

:money::money::money:

Don't be evil.

I would try asking CAB for advice first. Then university second, as I did see financial advice/help on offer at my uni for people with money trouble.

Keeping_Positive

I also was charged approx £600 on top of this fee for insurrance for example, if i was ill, it would carry on paying, or lost my job etc.

Would this come under the misselling of PPI? Look on the reclaim tab at the top and see if you could claim this back. Im fairly sure Martin has thought of all possibilities.

PS Ignore the idiots