Need Help ASAP

lostnfound

I have previously written about a provident loan i had from 4 years ago, which i am still paying as i forgot about it, had phone call last night from manager and they are calling this morning at 9.30 to discuss a rejig of my account.
This is what they want to do :
Add both loans together keeping it the same amount but all in one account
Says it will sort my credit file
Bring my payments down to £6.50
But will take 3 years to pay it off :eek:
I am very wary of what he has to say as i dont trust them as far as i can throw them.

Thing is i if i was to believe them i could do with another dent removed from my credit file and would go for it but i could pay of the small loan by the end of the next month which is £340 in total, the other i owe £650 on in total just short of £1000
so would you hold off an pay what u could an gradually chip away at the other gawd i just wish i new what would be easier.

Lucascain_2

If, as you say you can afford to pay the £340 amount by the end of the month, then why not do that and carry on paying regular amounts until the remaining balance is cleared? Seems the best option to me, as long as I've understood you correctly.

On another note, to do with Provident, I had a loan with them until two weeks ago. Had a remaining balance of £279. Being as I was helped with a few payments by a relative at this time, I gave my agent a cheque to clear the balance.

My collection day was a Monday, so, as two Mondays have passed since I paid the amount, I assumed that was the end of it. The cheque was dated 26th January. However, I only went and received a letter, dated 6th February from Provident, stating that they were aware I had difficulties in paying my regular amounts and I needed to speak with my agent!! Going to phone them now, this has made me slightly angry!

lxpeanut

If you put it in one loan what will the interest be? Unless its only the same interest as one of the loans you have I wouldn't even consider it. If you pay off the £340 loan and how long will it take to clear the other one? If its less than 3 years again I wouldn't consider it. Consolidating into one so you have only one payment sounds good but if you are going to take longer to pay it off you will be paying more in interest.

lostnfound

Sorry it took a while to get back, he`s been and gone.
I have till monday to make a decision on what i want to do, managed to get some leaway cause he did originally want a decision today.
Okay concerning the amount no more interest has been added i checked the document as he had it all written out and waiting for me to sign, very presumptious of him :rolleyes:.
It is the exact amount if i paid them seperately, paid over 150 weeks :eek: ,but on that note it may take longer to pay but i can still put lumps sums into it like i intended doing if they are seperate loans, intention to clear before the end of year as i have to try an remortgage then as fixed rate up :eek: .

I have checked my credit file last week an no mention of provident on equifax or experian at all. So file is clean on this aspect so what would you do pay longer at lower rate or leave as is an risk a black mark on credit file.
Just need some advice to fling in the pot an juggle it about an come up with answer either way.
Only thing that worries me is that as im on bursary for college it runs out in June and may put a spanner in the works if i throw all my money at this debt and not save some back for time between courses, as i dont return till September and it will no longer be a bursary im entitled to but loans, more bloody debt :eek: . Hope someone can make sense of what i have written,two options lump the two loans together and pay back over 3 years at reduced rate and same amount of money to be paid back or throw money at lowest and then try and throw more money at the higher one.

Any help appreciated

GeorgeUK

Am i following this right?

You have 2 seperate loans with them
They want to bundle the loans together - why?

Could it be that they don't have a properly executed credit agreement for the existing loans and are trying to get you to take this new loan so that it falls under the CCA2006 amendments?

Did they say how this would sort your credit file? Are there defaults for these loans that they intend to remove?
Is the interest on this new loan going to be front loaded?

Sorry for all the questions but usually when a bank is selling something, they are the ones that will benefit.

rog2

GeorgeUK wrote: »

You have 2 seperate loans with them
They want to bundle the loans together - why?

This, George, is quite a common practice with 'usury' lenders like Provident. There are many posts and threads on this forum where the 'provvy' will, contrary to all guidance' offer to extend or consolidate their doorstep loans, culminating in the 'debtor' seemingly paying for ever - as would appear to be the case with the OP.

Unfortunately the mere mention of the Provident sparks heavily divided and highly emotive opinion:

On the one hand, and for which they seem to enjoy a certain amount of percieved respectability, the Provident offers 'loans' to sectors of the community that mainstream lenders will not consider.

On the other hand their 'doorstep' approach to lending is, initially at least, often seen as a lifeline to their debtors. The 'loans' start as 'short-term' loans, at very low, and seemingly quite affordable' weekly repayments which mask the exhorbitant interest rates that they charge. It is when a debtor has problems meeting their payments that the 'collector' will often offer them a further loan - out of which they must pay off the original loan - and so the cycle begins. This, to me, is little short of the 'Loan Shark' culture.

In the current economic situation, lenders like the Provident will certainly be out to profit from the 'mainstream lenders' reticence to offer credit.

I have no wish to get into any argument about the pros and cons of Provident, and am sure that many of their 'debtors' have turned to them in sheer desperation. Equally, to those who accept their interest charges - and make the regular payments until the loan is paid off, then yes the Provident can be helpful.

My advice, to the OP, is, if at all possible, to avoid taking any further credit with Provident without first talking to either CCCS - 0800 138 1111, National Debtline - 0808 808 4000 or a Debt Adviser at his/her local CAB.