Welcome Finance Early Repayment

welcomehater

Hi
New user so hope I get this right
Back in 2007 i took loan out with welcome finance for £27000 which has been running till now. I am about to come into some funds which would enable me to clear this debt
However when I requested a full breakdown of the figures it turns out that to date I have paid them just shy of £38000 already and they say the balance stands at £17000 making a huge total from a £27k loan of £28k interest and charges £55k in total
I haven't yet gone back to them with any offer of full and final settlement however if they think i am going to pay £17k in one lot to them they are mistaken i will just continue paying my normal amounts
Anyone any thoughts on this :mad::mad:

PeacefulWaters

If you borrow at high rates over long terms then you pay lots of interest.

You'd be bonkers not to settle in full if you can afford to. But if you prefer to carry on paying excessive interest that's upto you ...

welcomehater

they have frozen the interest already just not sure how much i will get away with paying them

Caz3121

how long was the term and what was the APR?....would be useful to understand how paying the remaining payments on the current schedule compares to the £17k...I expect you will pay a lot more if you just carry on as is.
Welcome are unlikely to accept less than the outstanding amount unless you default first (would you care if your credit file reflected this for the next 6 years?)
I assume you went to them as you had previous financial problems and could not use a mainstream lender

[Deleted User]

OP they won't be interested in a "full and final" unless you are in arrears.

Brock_and_Roll

In a nutshell the OP has 3 options:


1) Keep on paying the agreed payments until the end of the term.


2) Settle the loan early paying the £17k


3) Default




Option 3 has to be considered in the light of the OP's wider financial position i.e. no assets, does not need a mortgage/credit etc for the next 6 years


Given that the OP says that interest is frozen, putting aside and emotions, it should be quite a simple calculation....




Simply add up all the future payments - lets say this comes to £24k over the next 5 years. If the inherent rate (in this example it is 15%) on the remaining period is higher than the OP could get in credit interest or some other investment, then he would better off settling now - i.e. it is not really MSE to have £17k credit in one account and £17k high interest loan, despite any loathing for Welcome Finance.

-taff

Course, if you paid PPI with that, you can make a complaint about it....

jellie

Caz3121 wrote: »

(would you care if your credit file reflected this for the next 6 years?)

Welcome haven't reported to the CRAs for some years.