Need advice on bank loan please ...

desperate_mum_3 · 30 January 2012 at 1:26PM

My daughter has a 4 month old baby and her husband left last week , she has applied for tax credits and housing benefits . Her smp ends in April then she will have to go onto income support .
She worked in a bank and had a staff loan she left the bank due to stress she developed alopicia the bank agreed to turn her staff loan into a customer loan but the rate is 28% , she has £4,000 outstanding but her repayments are £252 per month , she has always paid on time but obviously worried she is not going to be able to keep repayments up .
Is there anything she can do ? we are all worried sick for her ....:(

Tixy · 30 January 2012 at 1:36PM

Hi

If she cannot afford repayments once her finances/benefits are all sorted then she could write to them, explain the circumstances and offer reduced payments at a rate she can afford and also request that they freeze interest - they don't have to but banks often will freeze interest if they can see she is paying all she can realistically afford. Doing this will have a serious impact on her credit file but if she cannot afford it then its better than just missing payments without staying in contact with the bank.
If she needs to offer reduce payment then she will need to ensure her current account is not with the same bank - which may well mean she needs to open a new bank account with an unconnected bank.

If she just has a month or so where she cannot afford repayments (whilst benefits/child support etc are sorted) she could either ask the bank if they would consider a repayment holiday, or would allow her reduced payments for a month.

Has she discussed child maintanence with husband yet?

Also remind her to contact her local council to apply for single occupancy discount on council tax (assuming she is now the only adult in the property).

Happytogetdebtfree · 30 January 2012 at 1:38PM

Sorry to hear your daughter is having such a tough time of it, i dont know much about staff bank loans but surely they cant go from a standard rate to 28% thats like the aprs on credit cards, is there anyway someone in the family could help out or can she get a loan with a lower apr. post up a statement of affairs maybe we can help point out where savings can be made ?

hopefully other people will be along who can offer more advice

desperate_mum_3 · 30 January 2012 at 9:46PM

Great thank you i will tell my daughter , she wont just ignore the bank thats why she wants to sort things now , i will get info and post statement of affairs soon as pos ....

desperate_mum_3 · 31 January 2012 at 8:12PM

This is my daughters incoming and outgoings ...

Housing benefit £300
Husband £305
Tax credits £360
SMP £530....... This is due to end April this year .
Child benefit £81
..............Total £1,576

Outgoings
Tv licence £12
02mobile £38.......It is a 2 year contract and is half way through .
Car finance £158
Sofa's £24
Bank loan £252....this APR IS 22.56%
Water rates £25
Gas £70
Council tax £113
Car ins £36
Electric £95.HIGHER THAN USUAL BECAUSE SHE IS PAYING A MISSED BILL NORMALLY £70
Rent £550

............Total £ 1,373

RAS · 31 January 2012 at 8:23PM

Why is husband on £305?

cottonhead · 31 January 2012 at 8:57PM

I think the way forward is to speak to the bank asap - actually writing is usually better I find. Its easier to explain it clearly and you can keep a record of your letter.
Explain the circumstances and that your daughter really wants to pay but is not able to keep to the normal payments due to the circumstances that she has no control over and post them a SOA. Then offer whatever is left over each month. They will probably acept a lower amount - its better than it not being paid. This happended to me and I was told that whilst I was paying it back there would be a notice on my account to show I had an agreement but the account wouldnt default so it protected my credit rating and is then marked as settled once its all paid. I know its scary but banks are used to dealing with this sort of thing so it wont be as scary as you think and the releif afterwards will be worth it Im sure. All the best and enjoy your new little grandchild X

MusicalLawyer · 31 January 2012 at 9:53PM

The mobile phone - if she doesn't use all of her minutes / texts etc can be downgraded to the next tariff down as she's half way through her contract. The next month she can downgrade to the next tariff down again. Just an idea

desperate_mum_3 · 1 February 2012 at 9:35AM

Thank youn to everyone for advice ...it certainly has pointed us in the right direction .

RAS ... her husband went on the CSA site and used a calculator on there and that is the figure it came up with . They are both going to start marriage guidance next week so she wants to try to stay as friendly as possible if it is going to have any chance of working so she dont want to go through the CSA just yet but obviously if things get bad and he messes her around with not paying regular then she will ...

Once again thank you all ... xx

Need advice on bank loan please ...

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