Early Settlement of Loan.....

Bailey101

Morning All

A few years ago I took out a loan with Welcome Finance (I know, I know, but it seemed like a good idea at the time). Since taking the loan all my payments have been on time and made in full and there's never been any bother at all. However, I've now been made redundant and don't know when I'll be starting a new job.

My queries are -

1. I have £1044 outstanding on the loan and am in a position to offer a final settlement of £600/£700 - do you think it's likely they may accept this?

2. How would I be best to go about making this offer?

Many thanks for reading, and any advice will be much appreciated

xxx

Rafter

bailey,

even if they accept your offer, you will technically have defaulted on your loan and will mess up your credit rating.

Better to keep on paying, as you have the savings to do so, and hope that you get another job to pay the loan off in full.

Good luck

R.

Bailey101

Rafter wrote: »

bailey,

even if they accept your offer, you will technically have defaulted on your loan and will mess up your credit rating.

Better to keep on paying, as you have the savings to do so, and hope that you get another job to pay the loan off in full.

Good luck

R.

I didn't realise that it would be classed as a default if they agreed to end it early. Thanks for the warning!!!

xxx

stephane_2

Rafter wrote: »

bailey,

even if they accept your offer, you will technically have defaulted on your loan and will mess up your credit rating.

Better to keep on paying, as you have the savings to do so, and hope that you get another job to pay the loan off in full.

Good luck

R.

I do not agree with that, if he comes to an agreement with Welcome Finance that the account will show as settled then it is perfectly possible, it does not mean that they will report the account with a default. I would write to them and explain your situation. Just make sure that if they agree your offer of settlement figure that they will mark the account as fully settled.
At the end of the day you have nothing to loose by asking!!

[Deleted User]

if you have never missed a payment they are unlikely to agree to a reduced f&f,if you were in arrears then it might be a good deal for them.
Use the moeny you have to keep up the payments is the best plan