Moral issue with ex, OH and repaying a loan - advice needed please!

Jo_R_2

A question...

One of my debts is an unsecured loan with a balance of somewhere around £7865 (that is the most recent figure I have, from last October) with Intelligent Finance. The interest is at 12.75% which I am hoping to negotiate (worth a go!) as well as taking the PPI off, but at any rate before I've done any of those things my repayments are £154 per month.

With this loan I have a pretty good if not excellent repayment record - it was taken out in 2004 and has another 4 years to run.

The question - I shall get to it! - is, I have been negotiating with my ex to go halves on repayments. The loan was originally taken out when we were moving in together to consolidate his debts, but I did it in my name :rolleyes:

We have provisionally discussed going halves on the monthly amount, and I have suggested that if he prefers he can pay direct to IF rather than to me - to be honest I think I'd prefer this. But I was half-considering if I continue to pay the full amount per month and have him pay "his" half straight to IF, this would be brilliant in giving me a debt-free date much nearer and obviously saving a fortune in interest:j

I suppose my problem is a moral one... I live with my OH who works (I don't after being made redundant a while ago) and although he understands the situation with the loan and has helped with me keeping up payments on it, my ex is an old friend of his and to put it bluntly my OH resents contributing towards his friend's debts, if that makes sense?

I'm not sure whether to just pay my half and let ex pay his half if we eventually come to an agreement on it, but obviously that would leave me in the position that if the ex didn't pay any instalments, it would be me that would be left with the fallout (again...:mad::mad::mad:)

Any suggestions?

Starlett

Toughy!! If it were me, personally I would want to protect the possibility of defaults if he didn't pay his 'half', see his contribution as just that... a contribution... clear the debt faster so that you and your new OH can move on with your lives together! But it's not easy!!!

I wish you luck with sorting something out!

Starlett x

RAS

Ignoring the moral issues..........

You are legally liable for the full amount. If you ask your ex to pay straight to IF and he does not, it is your credit rating that will be wrecked and you that will be chased through the courts.

So you need to be able to keep tabs on this. It might be best to get a separate basic bank account in your name to which ex pays each month by DD and then you pay the money to IF by standing order, as well as your own contribution.

have you reclaimed any PPI, or claimed on it? Are there any late charges?

Jo_R_2

RAS wrote: »

Ignoring the moral issues..........

You are legally liable for the full amount. If you ask your ex to pay straight to IF and he does not, it is your credit rating that will be wrecked and you that will be chased through the courts.

So you need to be able to keep tabs on this. It might be best to get a separate basic bank account in your name to which ex pays each month by DD and then you pay the money to IF by standing order, as well as your own contribution.

have you reclaimed any PPI, or claimed on it? Are there any late charges?

Thanks RAS.

The separate bank account is a good idea, I hadn't thought of that. My ex pays child support every month and since the agreement has been made, he has paid dutifully each month by bank transfer. This did however take a long time to arrange and I don't want to be 'dependent' on him paying the money, as you say, it would be me "paying the price" so to speak if he didn't pay.

I haven't yet reclaimed any PPI. I was going to claim on it when I got made redundant last April - there was something like a 180-day claim period - but it required my old manager to fill in a substantial section of the form. Due to a lovely cascade of events in short she never returned the form to me so I was unable to make a claim in that time :mad:

Sorry - do you mean late charges as in paying instalments late? Or a late claim on the PPI?

RAS

OK, if you were unable to claim the PPI, then recalim all the payment ytou made on the PPI.

Late charges - charges for paying late or any other penalty charges (not interest) that has increased the debt you owe. These can be reclaimed and unlike bank charges there is not court case holding payments up. You can add 8% interest though.

Jo_R_2

Afaik, I have never had any late charges on said loan. I've been pretty much spot on paying it every month, apart from the odd couple of times a while ago which didn't appear to be a problem as I discussed it with them and paid it very shortly after the payment date.

I've always been very 'protective' over repaying this loan, mainly because I have been under the impression that as this is the largest amount of credit I have taken out, it would mess up my credit rating if I defaulted on payments and impact me later on in life when I do hope, at some point, to getting a mortgage.

I know I can steadily continue to pay it myself if needs be; it does get me down though that it's another 4 years to run and such a lot of money when I'm not working:eek:

RAS

So reclaim the PPI.

robnye

couldnt your ex take a loan out for half of the outstanding amount, you also take a loan for half the amount , then both of you pay of the original loan... hence the old loan is converted into 2 loans

penniesgrowintopounds

Hi, Jo!

The seperate bank account is a great idea. If you can afford the repayments by yourself, get the ex-oh to pay his share into this new account, and leave it in there to mount up towards the deposit when you buy

Good luck with this x

Jo_R_2

robnye wrote: »

couldnt your ex take a loan out for half of the outstanding amount, you also take a loan for half the amount , then both of you pay of the original loan... hence the old loan is converted into 2 loans

In principle yes... In practice I am fairly sure he would tell me where to stick that! :eek:

He has been happy to let me carry on paying the loan after he moved out, whilst not contributing towards his children. He does now pay maintenance but he has never "offered" to contribute towards the loan, not even when I got made redundant and he knew I was struggling to pay the loan instalments out of my benefits. The only time he discusses it is when I broach the subject, he would never offer anything off his own back. Because of this allergy to responsibility he has, I doubt very highly even if he did agree to pay half each month that he would even consider taking a loan out in such a way:rolleyes:

robnye

Jo_R wrote: »

In principle yes... In practice I am fairly sure he would tell me where to stick that! :eek:

He has been happy to let me carry on paying the loan after he moved out, whilst not contributing towards his children. He does now pay maintenance but he has never "offered" to contribute towards the loan, not even when I got made redundant and he knew I was struggling to pay the loan instalments out of my benefits. The only time he discusses it is when I broach the subject, he would never offer anything off his own back. Because of this allergy to responsibility he has, I doubt very highly even if he did agree to pay half each month that he would even consider taking a loan out in such a way:rolleyes:

ah, i see now......