So today i recieved a phonecall from welcome finance

[northernmonkey]

They told me that dh's loan is in arears and that with our monthly payments we're only paying of £25pm off of the loan balance.

He said that they can offer a 30% reduction on the final pay off fee and recomended we look to get another loan to pay off this one.

I really didn't want us to fall into the trap of getting more loans but i cant afford to double our monthly payments I know its our fault we got into arrears but it looks like another loan is the only option doesn't it

We dont have great credit so is there any good options??

I work for a credit union. We often consider refinancing Welcome Finance loans at much better rates for people who have less than perfect credit records.

Find your local credit union here. If you or DH are members of a Trade Union they also have close links to the credit union movement so they may put you in touch with one. Certain industries have their own credit union (e.g bus drivers).

Try to avoid Welcome if you can. Typically a credit union will lend at 12% interest per annum.

I work as a volunteer loan officer so I know the situation you are in very well as I decide the who to lend to. Typically, for a £25 monthly repayment depending on your circumstances and what it was for I would lend up to £500 and spread the repayments over two years. Other credit unions may lend under different criteria so that is just an example.

Thankyou for your reply ABetaDad.
Unfortunatly the amount we are paying at the mo is £185pm. What they told me is that with the interest charges this is only taking £25pm of the total loan. We would need to almost double this to start paying off the loan.

Dh is a memember of a local credit union but i doubt they'd do us a loan for £4000 would they??

Dh is in bed at the mo as he has been struck with the dreaded sickness bug so i'm trying to work out our options to put to him when he's better

have you investigated whether you can apply for a time order?

You could always ask, especialy if DH has been a credit union member for a while and had a loan before that he paid off or even just saved they can do loans up to £5,000.

I am not saying they will do the loan but they do may depending on circumstances. The much lower rate of interest at the credit union would allow you the capital much quicker.

A loan of £4,000 spread woudl be fully paid off in under 2.5 years years at your local credit union if they charge 12% interest rate per annum interest.

He has been with this credit union for quite a few years actually so i will get him to ring them and ask. The worst they can do is say no and then we look elswhere.
I'm glad i posted now because we would never have thought of asking there.

Thankyou for the link iheartdusty. I have had a look but i dont think we qualify for that one, however i am greatful for your reply