Cannot move home due to Welcome finance

euronorris

If I understand correctly, increasing your payments to 550 per month is an increase of 146.09 per month. That's 1,753.08 per year. If you pay that until 2019, that's 9 years of payments, so 15,777.72 in total!!!!

Also, in your first post, you stated that 350 of your monthly payment was interest alone. So, that leaves 53.91 to reduce the balance each month. That's 646.92 per annum and 5822.28 over 9 years. So....it does seem roughly correct what they have quoted (as the interest amount will decrease over time), but even so, the interest is crippling you here!

It seems that the interest rate is around 19.09% (roughly), which is very high.

Even increasing payments to 600 per month would only bring the DFD forward by about a year(ish).

I think you should follow up on the PPI query and also the legality of the contract, but, in the meantime, you should think about increasing the payment amounts to the maximum you can afford each month. Look at your SOA and strip it down to bare essentials etc and increase the loan payment as much as possible.

Have you been over to the DFW board for ideas and support in that area?

euronorris

Have you looked at the 'Up your Income' threads? Mystery shopping, free scratchcards, using cashback sites etc etc.

cheekychco

euronorris wrote: »

If I understand correctly, increasing your payments to 550 per month is an increase of 146.09 per month. That's 1,753.08 per year. If you pay that until 2019, that's 9 years of payments, so 15,777.72 in total!!!!

Also, in your first post, you stated that 350 of your monthly payment was interest alone. So, that leaves 53.91 to reduce the balance each month. That's 646.92 per annum and 5822.28 over 9 years. So....it does seem roughly correct what they have quoted (as the interest amount will decrease over time), but even so, the interest is crippling you here!

It seems that the interest rate is around 19.09% (roughly), which is very high.

Even increasing payments to 600 per month would only bring the DFD forward by about a year(ish).

I think you should follow up on the PPI query and also the legality of the contract, but, in the meantime, you should think about increasing the payment amounts to the maximum you can afford each month. Look at your SOA and strip it down to bare essentials etc and increase the loan payment as much as possible.

Have you been over to the DFW board for ideas and support in that area?

Unfortunately is £380 a month going on interest

I am relooking into my finances to see what I can cut here there and everywhere. I dont care if I go without, as long as my kids are happy and healthy and have what they need I'm good to go.

What is the DFW board (sorry if being dumb).

On the housing boar I did the same post and someone said about looking into voluntary repossession which I guess would allow me to rent till I sort myself out.

cheekychco

euronorris wrote: »

Have you looked at the 'Up your Income' threads? Mystery shopping, free scratchcards, using cashback sites etc etc.

I will have a good look round. Have done in the past. Free scratch cards, i have the worst luck in the world haha.

Seeing as I'm going to cut back, if i do buy anything, of necessity from the net, I'll use the cashback sites.

Once I get home, I'm going to have a really really good look around all the boards that have been suggested to me. Lots of reading to do once kids are in bed but it;ll be worth it (fingers crossed)

euronorris

DFW is Debt Free Wannabee. It's where I started on here and it's been great.

Soooo many helpful people and advice.

Also, there are threads on old style cooking etc to save money on groceries etc etc.

cheekychco

lol thank you. The cooking bit I've got hands down :-) mum used to be a chef

I use mysupermarket for my shopping and use the market for veg as its much cheaper and fresher and use my local butcher who always tends to be cheaper than the supermarkets and the meat lasts so much longer...

I only started doing this when I had kids Should have done it a long time ago

cheekychco

oh and thank you for explaining DFW I'll also look there tonight.

cheekychco

Update...

Spoke to my housing association who gave me a number of a company they refer residents to with regards to debt issues - awaiting a call back from them.

Got through to the CAB office - awaiting a call back from one of their advisors.

Still awaiting a call back from the Law Centre.

Once I have all info of my options will probably call mortgage provider to find out about voluntary repossession to see where I stand. Problem is I have nowhere else to go and housing association were not clued up about that at all and i dont think I can stay in the property.

cheekychco

Another update lol - feel like I've spent most of my day on the phone...

CAB referred me to moneymadeclear.
They referred me to OFT
They referred me to Financial ombudsman

FOF are now sending a formal complaint to Welcome and also sending me a form to complete.

Now the reason they are doing this is as follows...

Nov 2005 - £1500 personal loan taken
Jul 2006 - £7500 personal loan taken
Oct 2006 - the two were pushed together. I was advised this via welcome on the phone and was told the payments would be lower due to pushing the two together. This was all doen on the phone and no paperwork was ever signed. I was only ever told what the paymenst would be. I asked if the length of the loan would still be the same and they said yes (stupid me for not getting it in writing)

Then obviously last loan(when i topped up 4k) nov 07 totalling 21k.

Its due to the one agreement being done over the phone thats become a big issue they do not agree with. They have 8 weeks to respond.

Not sure if it will help or not but its something.

I'm now going to email the CEO again and tell her I've made the complaint. As I said before not trying to get out of the loan, but if something can be done i.e. change it to personal loan of freeze the interest it would be a massive help.

I've worked out that in total, since about Nov 2005 I've paid approx £26.5k. money well spent eh lol

blue_monkey_2

Just stumbled across this this cheeky and wanted to wish you luck.

We do all learn by our mistakes unfortunately.

My 2p's worth is this:

Stop paying Welcome now, find somewhere to rent while your credit rating is still good and go for Voluntary Repossession. The house will have to be sold and as they have the 2nd charge on the house the HA would get the first lot of money when it is sold, then Welcome would get the balance. Then they could either come to an arrangement with you or take you to court for the balance - which would mean the ridiculous interest would be stopped too.

In the meantime use the money you pay Welcome each month to find somewhere to rent.

I do not know all the ins and outs but is this an option? Can welcome stop you selling the house even if you do not pay for it and it get's taken off you?

Many years ago I had a loan secured on a car and it was repossessed - I split with my BF (I was young and stupid too) and could not afford it so they took it and sold it for a pittance and I was told to pay the balance of £1800. This was, wow, 15 years ago and I am still paying it now, £3 a month. Ho hum. I've asked numerous times for a settlement figure but they do not respond to my letters so I'll just keep on sending my £3 a month until I die no doubt.