secured loan settlement strategy?

peejbob

Hi

My first post

I have a secured loan with FirstPlus and my first credit priority is getting rid of the loan. I now realise, along with many others, the perhaps unfavourable terms that we signed up to with regard to early settlement.

I soon want to settle this loan.

I took out my loan of £30,000 in May 2001 and with rate increases it is now at around 15.3% APR, £367.48 over 300 months.

I have looked at resettlement and believe after reading many forum posts i will be subject to Rule of 78 and about to ask the resettlement figure. I expect it will be around my original loan amount if i am lucky and more perhaps £32-£34k if i am not.

I wondered if anyone has tried any strategy to reduce the settlement figure with FirstPlus or other company and after reading peoples posts have something in mind.

1)ring and ask to reduce the term of the loan to minimum term (contract says minimum 120mnths subject to company's discretion)

2)ask also for a reduction in % APR and hint i am looking to move to another lender.

3)let it run for 1-3 months on the new terms and ask for a settlement figure.

4)pay monthly overpayment to maximum without penalties on each payment in (3) (contract says 10% subject to company's discretion).

Here are my hopes:

The new terms, if i manage to get them, will mean that the Rule of 78 will not apply as it was abolished in March 2006.

And

The settlement figure will reflect this plus the perhaps reduced term and APR will also mean that a resettlement will be more favourable than it is now.

What do you think?? Bonkers or might it just work?

Anyone tried or failed or succeeded doing similar?