Welcome Finance Loan!!!!

rubberdave

Hey folks, just joined the forums to get a bit of advice if possible.

I've been paying a welcome finance loan for a year now and have just received my first yearly statement which has shocked me into doing all I can to now get rid of it. I'm paying £15K at 22.2% APR over 180 months at £290 per month!!! It's horrific!!

Basically I'm looking to consolidate this and a credit card but I'm not wanting to start going through loan applications without a bit of advice, where's doing good deals at the moment, is it still extremely difficult to get credit, the reason i went with welcome is because they we're willing to give me the money, I now see why!!!

Any response appreciated.

Dave

mrgibbson

didn't you look at the rate before you took out the loan or have they increased the rate?

rubberdave

The rate has increased since the loan was signed for, by about 7%...guarantee the small print will say they are entitled to do this at any point!! Robbing b*ggers!!

euronorris

Due to your poor credit history it is highly unlikely that you will be able to get a loan elsewhere for cheaper.

I think your best bet is to overpay (T&C's permitting) as much as you can. At the current rate, you would end up repaying 52,200!! Increasing your payments to 390pm would reduce the repayment term to 5.5 years and your total repayment amount to about 25,000. Increase it to 450pm and you reduce the term to 4.25 years and your repayment amount to about 22-23,000.

euronorris

Also, see here: http://blog.moneysavingexpert.com/2010/06/11/help-im-paying-76000-interest-on-a-20000-loan/

There is a follow on thread at the bottom of the article where people have made more possible suggestions. You're not alone.