First Plus

amersall

jaynemaria wrote: »

Just take a deep breath and ring. Whats worse, actually knowing or worrying about what might be when it may not be as worse as you fear?
After all whether you find out or not the amount will still be the same, not knowing wont make it dissapear, I only say this cause I was in a similar position regarding credit cards and although it came as a shock to see it in black and white, it gives you a sense of being more in control .

Go on you CAN do it

Thanks for that

losingbigtime

Yes thanks. It's just I am in such a mess at the moment with all my other finances I cant bear to think that one I thought was under control may be more than I thought it was. As I said we got it about 4 years ago, £25,000, took the PPU first then cancelled it within a month, so if they have been adding this on without my knowledge then I will be doing something about that. I was estimating that the balance outstanding would be about £15,000 by now but its not looking good upon reading things on here about First PLus and the PPI scandals. I will be ringing them tonight or tomorrow, I have written to them and emailed them in the past without any sort od response - how rude !

Peeky

losingbigtime wrote: »

Yes thanks. It's just I am in such a mess at the moment with all my other finances I cant bear to think that one I thought was under control may be more than I thought it was. As I said we got it about 4 years ago, £25,000, took the PPU first then cancelled it within a month, so if they have been adding this on without my knowledge then I will be doing something about that. I was estimating that the balance outstanding would be about £15,000 by now but its not looking good upon reading things on here about First PLus and the PPI scandals. I will be ringing them tonight or tomorrow, I have written to them and emailed them in the past without any sort od response - how rude !

£15,000? - not in a million years or in a month of Sundays.

AMILLIONDOLLARS

Sorry to be the bearer of possible bad news, but after 4 years, I suspect you have not made any inroads towards clearing the balance. As I have said before, please prepare yourself for bad news. As to your other debts, any chance of your getting a second job to help with your finances. Go over to the Up your Income board on suggestions on upping your income. What about selling on Ebay, I'm selling things starting at 99p and getting more. Its worth a thought.

AMD

losingbigtime

Hi, I have ebayed everything I own, and I already have 2 jobs (as does my partner) and I never see him or my son. :-( i think I am going to lose everything. I have contacted CCCS to see if I can reduce the monthly payment on my debt management plan but I guess the creditors wouldnt be happy with that, I have to pay for my son's uniform as he goes to high school this time and even if i just got one of everything its still over £100, and he needs £18 a week for his bus pass. I dont knwo what I am going to do :-(

losingbigtime

Peeky wrote: »

£15,000? - not in a million years or in a month of Sundays.

I just added up that £217 a month x 48 payments is abotu £10,000. I thought the monthly payment included the interest?

AMILLIONDOLLARS

You may be subject to the Rule of 78, It all depends on when the loan was taken out.

I have coped a link below explaining this rule.

.http://www.tiac.net/~mabaker/rule_of_78.html

This is an American site but the same principle applies, will try to find a UK equivalent

AMILLIONDOLLARS

Here you go:

The Rule of 78

When you borrow a sum of money from a bank or other lender, you usually arrange to repay the loan with a fixed interest rate by a specific date in a set number of equal installments. The rule of 78 is one way in which lenders calculate how much interest you should have paid at any stage during the repayment period of a fixed rate installment loan.Where does “78” come from? The number derives from the 12 monthly parts of a one-year period. The sum of those parts (12+11+10+9+8+7+6+5+4+3+2+1) is 78. Thus, for a loan with a one-year duration, the lender expects you to pay 12/78ths of the interest in month one, 11/78ths in month two and so on down to 1/78th in month twelve.
The rule of 78 takes into consideration the fact that you pay more interest in the beginning of a loan when you have the use of more of the money and you pay less interest as the debt is reduced. Because each repayment installment is the same size, the part going to pay off the amount borrowed increases over time and the part representing interest decreases.
Should you decide to repay a loan early, the lending institution will use the rule of 78 to determine how much interest you do not have to pay. However, you may be unpleasantly surprised by how much of the capital sum of your loan remains outstanding.
The key point is that the interest you are charged on the sum you have borrowed is NOT spread evenly over the number of payments you have agree to make. Thus in the early period of your loan's life span you have been paying more interest and less capital, reducing the outstanding amount more slowly than you may have assumed.

However:

Rule 78 cannot be used on loans after may 2005.

quote

However, changes to the Consumer Credit Act mean that, the Rule of 78 will be abolished on all new loans. Providers will now only be able to charge a maximum of two months' interest - as opposed to sums that have sometimes been much higher.
The reform will apply new borrowers after 2005. Existing ones who have loans for terms of 10 years or less, and want to settle early, will not benefit until 2007. Those with loans for longer than 10 years will not be covered until 2010.

(Both items have been copied and pasted from the internet)

This mean its very important for you to find your paperwork.

AMD

Emmzi

you are not going to lose *everything*

Right now you have a house with no worth/ equity in it

You have a raft od debts you cannot repay


And for some reason you are trying to cling on to these.

Is there more to this story?

does your oartner know about the debts?

What is partner's opinion?

Sometimes you just have to put your hands up. Being in a rented house is often no worse than being in a house you own nothing of.

Your are not going to lose your child because you have been a bit daft with money, are you?

I suggest pride swallowing and investigating the alternatives.

losingbigtime

Hi,

Firstly I am not looking for a settlement figure in order to pay off the First PLus Loan as I have no means to do this, I just want one out of interest. I got the loan in 2006 so does this mean Rule 78 does not apply?

Partner does know about all my debts and the debt management plan, the debts are my fault and my responsibility. Partner was not pleased when he found out and said it was my last chance because i had put the house at risk and the fact that we cant now have anything, holidays, days out, dvds, takeaways, new clothes etc. Fair enough. He cant afford to contribute anything more than he already gives me (all the bills come out of my bank as it was my house to start with and everything was in my name - (he came to live with me and just gives me half of what it costs to live here - I added his name to the mortgage).

I am not trying to cling onto debts, why would I do this? I dont quite understand that comment.

I'm very confused now. Sorry folks, thanks for your responses