help need to get rid off s/loan

susan81

hi i was very stuiped about 4 years ago and got a secure loan off welcome finance but i cant get it paid as its for over 180 months and my payment dont even cover the intrest they charge me each month i only borrowed £7000 and have to pay back £32,000 i need help but don't know were to start.As i can not get a new loan as no one will even look at me.:(

Tixy

Can you increase your payments at all?

Might be worth popping over to the debt free wannabe board here on MSE to see if the posters there can suggest a way forward for you or a way to decrease other outgoings so you can pay this debt off quicker.

You say the interest is more than your current repayment - have you missed payments or made late payments to cause this to happen?

susan81

hi, No i have not missed any payments and have been paying it for 4 years now but it has started stressing me out now. They say i cant pay extra but if i get £8000 i can pay it off but i have no way off getting that sort off money as im only a low earner.

Tixy

What APR is it? what is your monthly repayment? If your payment doesn't cover the interest then the balance will be increasing not decreasing and it won't be paid off after 180months. Are you being charged for anything else as well monthly? insurance?

What is the value of the property its secured on? do you have a mortgage as well on the property?

susan81

the apr is 29.9 i pay £180.25 a month they are charging £191.85 intrest a month? I do not know what to do but i have been told welcome finance are in big trouble for conning people and my loan will never be paid off i think i need to go to the C A B about it.

amersall

Hi there, From what you have said you borrowed and what you were owed you will have paid front loaded ppi on this loan, that is payable over the term with interest.This is one of the most frowned upon of the ppi by fos.
Take a look here and see if you were mis sold this ppi.
http://www.moneysavingexpert.com/reclaim/
Welcome have been declared in default, take a look here
http://www.fsa.gov.uk/pages/library/latest/index.shtml
If you have been mis sold, then you will have the ppi taken off your loan and the ppi monthly payments made to date with interest given back to you, then your loan will be more managable, as your monthly payment will reduce by the ppi amount. If you need any help with this then please post on this thread.
https://forums.moneysavingexpert.com/discussion/1460775

amersall

susan81 wrote: »

the apr is 29.9 i pay £180.25 a month they are charging £191.85 intrest a month? I do not know what to do but i have been told welcome finance are in big trouble for conning people and my loan will never be paid off i think i need to go to the C A B about it.

So you do not have ppi? then please disregard my post above.

Tixy

Something doesn't look right about those figures.

A 7k loan at 29.9% over 15years should be a monthly repayment of around £160 a month. Have you got all the original paperwork. Did you have a repayment holiday at the start of the loan or anything?
Are you being charged insurance for it?

Why do you think you were conned, or who has told you welcome have been conning people? They certainly charge high interest rates and penalise people heavily if they don't stick to the agreement. Unless there is PPI on the loan which you could perhaps reclaim I'm not sure why you think you have been conned.

susan81

i have all the paper work and i think i will take things further with cab see if they can make sense off things i have checked and it has not got ppi on it well its not on the paper work they have crossed that bit out.??