Payment Holidays?

rs1984

Hi, got an unsecured loan from Halifax, which I took out when I was working full time. I since have gone back to university to study for a 1 yr MSc. Therefore I'm now only working part time. I've struggled on making the repayments since Sept08, but am now severely struggling. I was wondering what my chances are of phoning them up and asking for a payment holiday until June/July. By then I'll be back in fulltime work.
Hope this question's in the right place, if not apologies (just registered).
Any help would be appreciated.
Rob

Rafter

Rob,

Depends how much you want to mess up your credit rating as you will technically be defaulting on your loan.

R.

rs1984

What if I ask for a payment reduction as opposed to a break? Would that make a difference?
Thanks for the advice!

~Beanie~

Halifax don't allow payment holidays on their unsecured loans.

You need to contact them and explain your situation.

rs1984

Will do. but what should I expect. I don't want to do anything that would harm my credit file. Plus I don't think I'd be able to refinance with another loan, as my income is too low.

~Beanie~

A payment holiday or paying less than the agreed monthly repayment can both affect your credit file. We can't advise on what you should expect, you need to contact the Halifax and see what help they can offer you.

rs1984

Thanks for the replies. Spoken to them, and they're willing to offer no help. It's a fixed contract, full-stop.
Ah well, my fault. Looks like it'll have to be credit cards to pay off the loan! _pale_

Krishna_2

Many people commits mistake when signing the agreements by not reading them and i'm one of them

Former_MSE_Andrea

Hi everyone

We've removed some posts on here. Please remember MoneySavingExpert is about support and helping people out and not judgement on why that position was reached in the first place.

Thanks!

Andrea

hur575

~Beanie~ wrote: »

Halifax don't allow payment holidays on their unsecured loans.

You need to contact them and explain your situation.

That is not accurate as I took unsecured loan with 3 months holiday option. It was at the start of the loan though, once you start paying, there are no breaks I guess!

~Beanie~

hur575 wrote: »

That is not accurate as I took unsecured loan with 3 months holiday option. It was at the start of the loan though, once you start paying, there are no breaks I guess!

That is not a payment holiday though is it - that is deferring the start of the repayments for 3 months and is standard with Halifax loans.