Loan and overdraft advise.

polarbear

I am trying to consolidate an existing loan (£9000) and an overdraft (£3000) which has been transferred to a debt collection agency into a single payment but I can't get approved for a new loan because of the arrears on the existing loan and the debt collection agency. But. I can't pay the arrears on the old loan and the overdraft until I get the new loan................

I know that the correct advise is don't use credit to pay off credit but I can't afford the combined monthly payments on this and simply want to re-arrange the finance to allow me to make the payments. The combined payments are £480 per month as the overdraft has to be paid off in one year.

Help and suggestions please.

newmum1

what is the breakdown of the payments it does seem quite high give us apr on each also??

tomstickland

Hi, as already said, give a breakdown of loan amounts, rates etc.

polarbear

The overdraft and loan are both £60 per week each which gives me the £480 per month total. The loan has four years still to run and the overdraft MUST be paid off inside 12 months. This is in addition to the usual household bills which won't leave me enough money to live on each month.

There is no interest on the overdraft now that it has been transferred to the debt collection agency and they have said that if I keep up the payments then I won't hear from them again. The lady on the phone was very nice and friendly and tried to cheer me up but it didn't really help and I guess if I start missing payments then the next call won't be so friendly :eek:

The loan is with the Alliance and Leicester but I'm not sure what the interest rate is. I'm going away this weekend but I will hunt the paperwork out when I get back on Sunday.

Thanks

---lee---

polarbear wrote:

I am trying to consolidate an existing loan (£9000) and an overdraft (£3000) which has been transferred to a debt collection agency into a single payment.

Hi Polarbear,

Just to clarify, payments on the loan are up-to-date?

Overdraft has been passed to collection agency?

By the way, when people ask you to post the amounts, they mean the full details. All your income, all your outgoings broken down, the interest rates as well as loan amounts and payments. That way, they can suggest where you can make savings toward paying your debt.

Cheers,

Lee.