First Plus 'variable APR'

miss_lisalou

Has anyone had any experience with First Plus? I know it's a "loan of last resort" but mine is a last resort. I have £25k in personal loans and cards and over £60k equity so am looking to hugely reduce my monthly outgoings.

I have successfully credit scored for a loan with First Plus for £25k at 6.9%, however they have said that the rate is "variable", depending on my credit score and financial circumstances. Although I maintain a good credit score I dread the thought of 6.9% unexpectedly shooting up to 12 or 15%, thereby also pushing up my monthly payments again and being no better off.

Any advice/previous experience would be greatly appreciated.

PJY3206

lisalou,

listen up and listen good. I absolutely beg you, on my hands and knees from the bottom of my heart: DO NOT TOUCH FIRST PLUS WITH A BARGEPOLE!!

I took out a loan with them and it was the single worst mistake of my life. The variable rate means your payments are likely to increase and their PPI is absolute robbery (if you take it). I took PPI and now, even if I cancel it, I still have to pay it back. They will bend over backwards to give you a loan, but get nasty if you get into difficulty.

My advice - go to cccs.co.uk and list your statement of affairs (incomings / outgoings). You will get an instant statement of advice based on your circumstaces and they can suggest the best way forward. I took the loan with first plus, but still ended up starting a DMP with CCCS. Although things are difficult for me, I'm at least back in control of my money and my bank account is always in credit. I wish I had contacted them before turning to a secured loan.

Try the CCCS, you'll be glad you did

southernscouser

Do not consolidate! Especially with First Plus. :eek:

Have you addressed the reason why you are in debt? It's easy to think consolidating into a lower monthly payment will solve your problems but it won't. You need to address your spending so that your outgoings are less than your incomings.

I must have consolidated 4 or 5 times. Each time I got further into debt. :doh:

Visit the DFW board, post your SOA, and we'll be able to offer you better advice.

jonesMUFCforever

I agree with above posters.
Do it at your own peril!

You are quite correct to be concerned about variable interest rate loans with them - it usually means it goes up by a lot when interest rates are on the rise but only goes down a little when the reverse happens.

miss_lisalou

Thanks for your responses.

I'm still in a bit of a pickle though. The reason for the high debt is mainly from my student days and the first few years since graduating, when I was using cards to supplement my income as I wasn't earning much. I earn £27k now, but it leaves next to nothing free each month after my payments.

I have the First Plus forms here but will perhaps hang onto them or shred them then...?

I'll look at the website you mentioned, thanks.

dreamer33

miss_lisalou wrote: »

Has anyone had any experience with First Plus? I know it's a "loan of last resort" but mine is a last resort. I have £25k in personal loans and cards and over £60k equity so am looking to hugely reduce my monthly outgoings.

I have successfully credit scored for a loan with First Plus for £25k at 6.9%, however they have said that the rate is "variable", depending on my credit score and financial circumstances. Although I maintain a good credit score I dread the thought of 6.9% unexpectedly shooting up to 12 or 15%, thereby also pushing up my monthly payments again and being no better off.

Any advice/previous experience would be greatly appreciated.

DO NOT GO TO FIRSTPLUS, the rate is variable and the payments will constantly go up on a 2-3 monthly basis it will creep up always, it happened to us. Stay clear of all companies like them their profits are more important.

jonesMUFCforever

miss_lisalou wrote: »

Thanks for your responses.

I'm still in a bit of a pickle though. The reason for the high debt is mainly from my student days and the first few years since graduating, when I was using cards to supplement my income as I wasn't earning much. I earn £27k now, but it leaves next to nothing free each month after my payments.

I have the First Plus forms here but will perhaps hang onto them or shred them then...?

I'll look at the website you mentioned, thanks.

Why not pop over to the debt free wannabe board?
You will get a lot of advice on there on how to make savings and reduce your outgoings which should leave more money for you to throw at your debts.

fifikav

miss_lisalou wrote: »

Has anyone had any experience with First Plus? I know it's a "loan of last resort" but mine is a last resort. I have £25k in personal loans and cards and over £60k equity so am looking to hugely reduce my monthly outgoings.

I have successfully credit scored for a loan with First Plus for £25k at 6.9%, however they have said that the rate is "variable", depending on my credit score and financial circumstances. Although I maintain a good credit score I dread the thought of 6.9% unexpectedly shooting up to 12 or 15%, thereby also pushing up my monthly payments again and being no better off.

Any advice/previous experience would be greatly appreciated.

do not touch them and take others advice on this...i consolidated 50k and wish i had not...my apr was 6.9 but is now 11%!!!!i pay more to first plus than on my 90k mortgage....please listen to all the advice given..you will only feel a gain short term

miss_lisalou

Many thanks for all of your responses. I'm relieved that I posted this question before signing up now!

I phoned my mortgage lender C&G this morning and they agreed £25k over the phone at a better rate, fixed for 5yrs. It's still secured lending but with a more trustworthy lender no doubt, who aren't likely to change the interest rate on a whim.

I have decided to ditch First Plus and use their shredded forms to line my guinea pig hutch!
:T
Thanks again guys!

Rafter

Well done.

A further advance from your mortgage lender is usually a much cheaper way than a secured lender like first plus. Remember that someone has to pay all that money to Carol Vordeman to do all those ads and as a result the rates and charges are extortionate.

Please please please try to get yourself a budget and some self imposed saving going on though. And rip up your credit cards keeping one with a smallish limit for emergency use. You really don't want to be paying off student debt in 25 years time or getting yourself back into debt with nothing to show for it.

Good luck.

R.

Dylanwing

I have decided to ditch First Plus and use their shredded forms to line my guinea pig hutch!

Are you a hutch-owner?
Need a run? Or how about a bit of extra money to buy bunched carrots with fresh green tops?? We can lend up to 125% of the value of your hutch.....