Shall I Get a Welcome Finance Loan?

Rosey321

I'm hoping the very title of the thread may prompt response!

Brief summary: In lots of debt! As well as the mortgage, we have 65k secured debt with Firstplus and 17k debt scattered around in unsecured debt.

We saw someone who suggested consolidation of the various unsecured debt would be a good step forward as long as we cut up all credit cards etc as this would remove multiple creditors and help credit score. We have done this before, hence the secured debt and it has snowballed us into more trouble.

So why consolidate again? There is a bit of light at the end of the tunnel - my wife's monthly income should increase by a few hundred a month in the summer when she discontinues working part time and we are also selling house (downsizing) to free up some equity.

After consulting one of the websites who 'shop around and find a loan for you', the first suggestion was extending our Firstplus loan but unfortunately we apparently just did not qualify as there is not quite enough equity in the house. After this, Welcome Finance were mentioned as being willing to help - this with a secured loan (accepting third charge on the property) at 18%apr over a choice of 10 or 15 years.

On the face of it, it seems tempting - being a third charge and less than storecard APRs. However, having typed their name into the search engines and looked at various forums, they seem to have had a heck of a lot of bad press! Can this be confirmed? If so, what is the trouble with them?

I wouldn't worry about PPI as I have seperate cover for this but I am worried about some of the early repayment stories I have heard. Also, there seem to be stories about them raising APR and hassling customers? Any counteracting good points about them would be good too.

Also, how does this 'third charge' mallarkey work? I can't see that my forthcoming sale would generate any money for them as there wouldn't even be enough to pay off the second charge. However, I imagine they could benefit from future sales.

I am seeing a financial advisor for some (much needed) help on Thursday. In the meantime, any points you could make would be very 'Welcome'!

mackers8923

I'm not sure it is legal to have a 3rd charge on a property, well thats what I have been told.

Oh if you can stay away from Welcome if you do have to go with them stay away from their PPI.

GirlRacer_2

I'd also stay away from Welcome (one whose been there). They do put a third charge over your property but their APR is quite high. Couldn't you plod on with paying the debts at least until you downsize and get the OH back to full-time work.

Welcome get a bad press because of the APR. It can go up to about 50%. I've been with Welcome would NEVER go with them again. Perhaps you could post on the Debt Free Wannabee board and see if anyone can come up with any ideas on how you can save money i.e get 0% balance transfer CC's, reclaim bank charges etc.

Good luck on whatever you decide.

TallGirl

I agree with the points about Welcome Finance, I think you might need debt advice instead of a loan. Have a read of the DFW Board or call CCCS or Payplan for advice - its free.

tomstickland

at 18%apr over a choice of 10 or 15 years.

That is an appalling rate, on that will prolong the debt.

lush_bucket

Believe what you read! Welcome are horrendous. I don't know of anyone with anything positive to say about them. I wish I had known of this site before accepting a loan with them. Do you know that they charge £15 for every phone call made to you even if its just to ask for a direct debit form back, whether you pick up or not! And £25 for a letter. Utterly awful.