Help!

laura2525

Hi everyone, I'm a new member to this, and not v familiar with forums and stuff, so please bear with me!!

Basically, I was wondering if anyone might be able to give me some advice on my current situation. I am 24, and at the beginning of this year took out a 5k personal loan with my bank (repayment 155pcm over 5 years) to repay my credit cards etc. A couple of months ago, I then took out an extension of a further 5k for cosmetic surgery (repayment now 216pcm over 7 years).

I've now decided not to go ahead with the surgery, and have since left my job. I'm now going back to education this Sept to train to become a nurse, and to cut a long story short, I can't afford the loan repayments while studying. I do have £3700 of the loan left (I had to use part of the loan extension to cover living costs after leaving my job and also had a bit of a home emergency that had to be paid for).

Should I give the bank the £3700 back, and tell them I can't afford to repay the full monthly payments on the remainder, and see if they will come to some sort of arrangement with me to reduce the payments until after I've finished my studies in 3 years time? I don't know how likely it is that they'd agree to this? Any ideas?

My other option is using the remainder of the loan to cover the monthly repayments, but this would only be enough to keep me going for about a year, after which time I'm going to be in the same boat...

I'm really stuck!

Any help/advice would be greatly, greatly appreciated.

Thanks, Laura
(sorry for the ridiculously long post!)

hypno06

Are you able to make an overpayment of the £3700 against the loan? Presumably not, in which case what you have to do is to find the additional £6300 to pay it all off in full.......(it will be less than this because you have already made some payments)

So you need to look at something along the lines of:

• put the £3700 in an account THAT YOU CANNOT TOUCH EASILY
• ensure you CAN repay the £216 a month by doing whatever is necessary to earn the money while you are studying - join the £10 a day challenge, or the Olympic challenge, etc etc on these boards thereby not only getting in the £216 you need to repay your monthly payments but also any surplus gets added to the £3700 you have put away
• then when the amount in the savings equals the amount remaining of the loan you can pay it off early.

Other options:

• Get a low life of balance or 0% credit card if your credit status allows and hammer it down as much as possible
• come to an agreement with your bank but this is likely to cause you credit problems in due course as it will leave you with a black mark on your credit file.

enook77

How come the original loan for 5k was monthly payments of £155 for 5years is this not 3 years seems a really high Apr rate?

cady

Can you not work part time while studing like in a pub or something i worked nights at uni to pay me fees and for my book when you join uni / college there is somethings jobs fairs for these kind of jobs and there looking for students who want flexi hours ....... good luck