what will happen if I miss personal loan repayments?

hounslow_boy

Hi,

last year I took out a couple of personal loans from Barclays and nationwide totalling £40K. A poor decision I now know, bu at the time I felt I was in a good IT job, never been made redundant or out of work.

But now things in my industry look shaky, there appears to be a downturn that may leave me unemployed, and I'm worried about my job security for the first time ever.

If I loose my job and can't meet the loan repayments, what can or will barclays/nationwide do? I'm not a homeowner, I live with my parents.

Must admit I'm getting worried about what will happen. Can I be prosecuted? can debt collectors take my car away or even take items away from my parents house? I have a small savings account with another bank - could that be raided?

Thank you in advance.

alwaysonthego_2

If you lose your job then you would send the creditors a expediture sheet, monthly incomings and outgoings and offer them a token payment of £1 per month. When you get another job you must let the creditors know and you can look at how much you can afford to pay them a month and make them a new offer.
Sample letter for token payment is in this self help debt

Debt collectors can not remove goods and have no right of access to your parent's home. The only way creditors can remove goods is to get a court order, but they can not remove your parents things. A balliff has no right of entry, only through a open/unlocked door or window and can only lawfully gain access if accompanied by the police.

hounslow_boy

thanks alwaysonthego,

mad me feel a (little) bit less nervous. So if the worst does happen and I'm made redundant, I just have to make sure my parents don't let any debt collectors in the house.

Thank you

alwaysonthego_2

Hounslow, debt collectors can not come in to your house and remove goods so don't worry!

edit: don't forget to change your bank account if you bank with the loan companies otherwise they will take your benefits etc. I would do it now to be honest whilst your working.

CLAPTON

what did you spend 40k on... do you have any assets to sell?

big_gay_kirk

Used to do a bit of bailiff work.. most of the time if they do come round ( and if you're sensible, they won't) they'll offer you advice on how to get out of trouble.. at least that's what we did.. important thing is to get in touch with everyone you owe money to (and I mean everyone !) immediately you know you'll be out of work, and talk to them.. most of them will be incredibly reasonable... and the Bailiffs can only take stuff with a court order and the police... its expensive fro everyone, and usually a last resort option, and if you live with your parents almost certainly won't happen...

hounslow_boy

CLAPTON wrote: »

what did you spend 40k on... do you have any assets to sell?

many thanks to everyone that replied.

I used the money to buy my girlfriend a new car, and also to pay off her debts.

Unfortunately she left me last month for her old boyfriend

rachnbri

hounslow_boy wrote: »

I used the money to buy my girlfriend a new car, and also to pay off her debts.

Unfortunately she left me last month for her old boyfriend

That was very ummm..... generous of you! Are you in the market for a new girlfriend then (gets out accounts and looks up current price of Audi TT)

hounslow_boy

hi again,

i've had time to think about what happened re. the loans and my personal life. I guess I'll get over my ex gf and probably pay off the loans (one day).

But the big question all this raised for me, and i know this isn't really the forum for such questions, is...

...how do you stop yourself from doing everything for the one you love? I really thought she was the one for me, we got on well and she told she loved me and wanted to marry me. So i went 'all in' and as it happens got into a mess.

maybe it's just my personality type (stupid *lol*), but i find it hard to remain objective about my gf. I'm really nervous about getting into more problems if i meet someone else, but i tend to fall head over heels and forget about self preservation. Isn't that the big deal about being in love, losing your self in someone else.

Confusion reigns:(

thanks for reading.

CHR15

I lost a lot more than £40K whenI got divorced.

Take a look at whats between your legs...... As long as you have that, you will always be screwed over!!

lonestar1

alwaysonthego wrote: »

......don't forget to change your bank account if you bank with the loan companies otherwise they will take your benefits etc.

Its illegal for a bank to take money paid into your account by the government for benefit and if they do so you can demand its given back. I wouldnt advise paying cash into such an account though from any other source as they could seize that