will loan companies accept less?

cornishinfens

Due to a huge and stupid error on my part i ended up with two secured loans aqnd not enough to pay the first off.

I need to pay off a Breeze Loan, which was orgionally for £10,000 and after a year of regular on time payments the settlement figure is 11,000 with redemption etc.

i have 5,500 in the bank and can scrape together another 3,000 hopefully.

Currently i am spending 500 over my incomings with both loans (not facturing in overtime and annual bonus)

Done a budget plan and will be getting rid of things i dont need, beer, satelite etc.

What i need to know is is it possible to offer a settlement figure below that Breeze has asked for? If not i think i'm sunk... Currently in negative equity.

Any thoughts and tips greatly apreciated

MissKJ

Have you defaulted and gone onto any kind of debt management plan?I think that makes a difference,if you pay on time,they wont settle, it is only if you cant pay,then scrape some money from somewhere that they may take a reduced offer. Thats my understanding anyway

cornishinfens

I haven't defaulted... but it is only a matter of time.

I'm desperate not to lose my house, which i suspect will be quickly the case if i start defaulting

MrsTinks

It depends I guess on how much negative equity you have in the house... once the mortgage is settled then would there be nothing to pay the secured loans? If they think they can recover their money from your property then they'll do whatever they can to claw the money back... If they can see there is no hope of getting it all back then who knows...
Are you talking about a reduced monthly offer or a full and final settlement of a % of the debt?

Have you done an SOA on here for us to have a look at

Other things you might be able to do is get a lodger in if you have a spare bedroom... this might get you out of immediate danger re the secured loans and bills - do you have any other debts? If you do then remember anything NOT secured is NOT a priority debt...
There are lots of factors to consider

cornishinfens

Your Income Amount

Your take home pay £1,500
Your partner's take home pay
Rent/board received
Pension received
Any other income received £125
Income Support
Jobseekers Allowance

Your Income Amount

Incapacity Benefit
Disability Living Allowance
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support

Total income £1,625

Housing Amount Comment

Rent
Mortgage £674
Secured loans/2nd mortgage £700
Mortgage endowment premium
Service charge/ground rent
Water £25
Council tax £57
Gas £30
Electricity £30
Other household fuel

Household services

Building and contents insurance £11
Telephone, mobile & internet £33
TV licence £12
Satellite £21
Repairs and maintenance
Household appliance rental
Child maintenance
Childcare
Fines, CCJs, Decrees
Life insurance/pensions
Medical/accident insurance
Hire purchase

Transport

Vehicle spares and servicing £10
Road tax £12
Motor insurance
Vehicle breakdown cover
Fuel & parking £50
Public Transport

Food & housekeeping

Food, toiletries, cleaning £148
School meals/meals at work
Pets, pet food/insurance £21
Tobacco

Misc. goods & services

School trips/activities
Medicines/prescriptions
Dentist/opticians
Hairdressing £8
Union/professional fees
Laundry/dry cleaning
Education fees

Personal & leisure

Clothing & footwear £20
Newspapers/magazines
Sports, hobbies, entertainment £10
Children's pocket money
Church/charity donations

Sundries/emergencies/other costs

Sundries/emergencies £10
Loan from family/friend
Other

Total expenses £1,882

Additional information Comment

No of adults 1
Dependants 0

Totals Amount

Total income £1,625
Total expenses £1,882

Surplus (Deficit) (£257)

cornishinfens

with the above i also can get about 100 - 200 overtime, however this is currently few and far between. like i said i'm going to get rid of non essentials - also start going to Aldi instead of tesco's... try and sell my car and but a cheepy (false economy?)

It's amazing how much debt can take over your life... i desperately love a woman, but keep myself apart from her as i dont want my debtness to affect her.
But it's amazing what a release it is explaining things on here. I now know the worse that can happen is being evicted house and assets taken... possibly even have to go for bankrupcy...

I'm even going as far at the moment to sell my oak furniture and some of my beloved snakes - which i really would rather not do as i've has some of them as babies

mandi

Hya Cornish ,


I cannnot recommend more highly National Debit Line http://www.nationaldebtline.co.uk/. If anyone can give you free impartial advice the can .

Its a free call too..:D Give them a call tommorrow, make a list of questions before the call so you dont miss anything ..

Lets know how you get on .


Mandi

cornishinfens

will do, thanks

mandi

Just to ask ? have you contacted the loan company and advised them that you are struggling to pay .. Im sure if you explain the will reduce your payments, maybe just for the short term .

Please dont do that until you call NDL 1st though .Also if you cant afford to pay the full amount , pay what you can , that way your showing that you are not defaulting

Mandi

cornishinfens

what i'm hoping to do is clear the one loan i should have cleared at the beginning...

If i can then i'm ok - will be tight - but ok, i can then start the trawl on getting rid of the other loan/mortgage - making overpayments etc when i can

cornishinfens

Right, i'm now angry... Phoned Breeze Loans and they wont budge. not a penny less than what i owe - I gave them the worst case scenario and they didn't bat an eyelid.

I have contacted Northern Rock my mortgage lender who i'm stuck with at the moment. And am going to switch to a Intrest only loan for abnout a year and see what happens then.
I am going to scrimp and scrounge every penny i can, do every bit of overtime i can and get rid of this loan.

I will speak to the other loan and see if i cannot re-do the loan over a longer period, this should lower my monthly payments. Will get sell things i do not use or can live without - so long as i can break even on my basic salary everything else will be for loans.