Some basic advice from an ex CAB counseller

mrrussy

Hi, my new girlfriend has somewhat of a troubled past where she entered a bank loan with her ex who she had to leave becuase he was violent and he has a court appearance very soon because the police had to be involved due to seriousness. Once the courtcase for that is out the way there is a high possibility he will go back to his country and not continue the repayments for this loan thus leaving her to pickup the outstanding amount. The amount left to pay is 18000 and the bank have already sent her a letter to say there is a fall behind in the repayments. I have said she needs to go and see the bank to tell them the situation but I am not really sure what else she can do. The loan initially was to help finance a mortguage for a house he wanted to buy in latvia and when they seperated he has changed the ownership of it into his brother's name so I don't know how the bank can go after any of his assets to reclaim any money to clear the debt. Any advice would be really greatfull

ktbainbridge

Hi all,
Thanks for all the discussion so far it has been most interesting. I was wondering if anyone could help me with a question:

I am about to apply for a mortgage, so I used some savings to settle a £5,000 car loan from Tesco. It had a high monthly repayment (£430) so I was worried it would scare some lenders off. I asked Tesco how long it would take to show as settled, and they said they report to the credit agency once a month but didn't know when (!). I only settled it a couple of days ago, and it was by cheque and I want to make my mortgage application this week (as not to lose the dream house). Is there anyway of changing the application process to show the loans been paid off even if the credit check shows it isnt yet (just because it hasnt been updated yet). Thanks for any advice!!

Senior1983

Kenny wrote: »

Hi. I've never done this before so if I'm in the wrong place sorry! I'm a student and got into debt in my first year and had to take a loan out with the bank (Natwest). Since then I'm in a constant spiral. I have to pay £99.53 a month in repayments so can never get out of my overdraft. I've been to see the advice centre here and they've spoken to Natwest for me but Natwest have said that they won't do anything with regards to my loan until I go over my overdraft and thus get further into debt! How can they do that? I'm trying to be responsible but have to get further into debt before I can get out!

Hi kenny

If you think about it from there point of views it rational. If you pay the loan each month on time and there hasn't been an issue for them to resolve as yet.

If you miss a payment it has consequences for you so u'd endeavour to pay it.

It's about bringing in the money for the company.

This might sound basic but cut back your expenses and pay it or earn more and pay it off is what company's would like to say.

They don't want you in arrears more than you do.

Everyone needs available credit eventually so manage accounts carefully so when you need it, it's there. In 5 years the £100 stopping you gettin a mortgage would be a sickener.

hypnodoc33

Many thanks for your informative article.
I have a credit card from virgin and have not used it for 3 years. the interest rate is about 18% now. I accepted some virgin cheques and special no interest deals.
I did not know that these loans were paid off first and the interest on the older loans was compounding . My payments suddenly jumped from £87 a month to £256 a month I phoned them and tried to ask about this but got the brush off .
Can you tell me if it is legal to charge interest in this way.

barosc333

I agree with 99% of what you say regarding the CAB and all they do. I went to the CAB about 3 and a half years ago with spiralling debts on my credit cards amounting to £55,000, I tried to make minimum payments but the interest and charges kept mounting. The spending must have been around £20,000 but with the interest and late payment charges the debt went higher and higher, I went to the CAB and within a month they had stopped the charges and had set up a payment plan which I could afford. The upshot was 3 years down the line I had repaid almost £20,000 and was now seeing a light at the end of the tunnel.
However a couple of things pi**ed me off with the CAB, in the 3 years I was with them my "personal advisor" was changed 4 times which meant I had to take time off work, (which I could ill afford), to meet with them and discuss my case, and supply them with paperwork, statements, bills etc. All these things were in my records. The main point was my last advisor was so rude and condescending towards me I walked out and I have never went back, instead of being a guardian angel he thought he was god almighty. He told me he would not deal with my case unless I changed my bank. I had been with them for 35 years and had my mortgage with them, this proved so much hassle it was a nightmare to do, but I did it. He then advised me to buy a new car so as this would increase my outgoings and bring the payments to my creditors down. I wanted them paid off quicker not slower. The upshot was I left and have been dealing with it myself. In the last 4 months I've contacted 3 of my creditors and got a reduced settlement figure, saving myself £6000. My overall debt is now under £25,000 and falling. I applaud the CAB for what they do as I would hate to think where I'd be without them.

lou2327

i have plans to emmigrate in the next few months i have a car on finance i can not afford to settle the finance before i leave, what is the best way to go about this? can anyone help please?

Enemy_2

How much is the settlement and how much can you pay?

It may be that they can offer a reduced settlement, if you explain the circumstances, as it will be in their interest to get as much back as possible. Also the value of the car might help offset the difference - most companies will be willing to discuss a possible sale, though they will be the legal owner so you cannot sell it first and then pay settlement.

Ultimately, leaving the country does not mean the debt will be ignored or forgotten.

myfriendmartin67

Your advice is spot on about how people incurr debt and mine was foolishly letting the bank give me a £1000 loan in the first place but now after years of paying debt off which I do and struggling to live because of it I am now only a year from being totally debt free and have learned to budget so well that I will never need or get any form of credit again, the best thing to come out of my errors in life is my children know all about it as I explained it all to them so they know why mum is always skint and all have learned to save a little and do without.

growbags_2

Upon the advice of CAB (who have been brilliant at helping me with our debt problems), I have written endless letters to my three lenders and most of the time I am lucky to get a reply. What should I do when I am trying to keep communication open but am getting no feedback or reply? even a cursory acknowledgement letter? We just keep receiving computerised letters. However,when I put our proposed payment plan into action I don't get a letter objecting either so should I take it that no response is an acceptance of my offer of payment? Has anyone else had this problem

Stivedavice

How about a 'sticky' at the top of this board with some basic advice?

Many of the posts here are the same to a certain degree but I feel there are important pieces of advice being fragmented across many posts and threads and some things are not even being mentioned - possibly for fear of upsetting someone.




thanks