Struggling to pay loan - advice please

posterpaint_2

My son took out a loan in July of 2008 for £5000, he has made all his repayments on time with no problems. He was told on Friday that unfortunately he will be going on a 2 day week due to the fall in work in the construction industry, he will therefore not be able to make his loan repayments. We rang the Royal Bank of Scotland yesterday to explain the situation, to try to either take a payment break or reduce the monthly payments. We were told that was not possible, the option offered was to refinance the loan over a longer period of time, but, he is now not earning enough to take a loan out!
The Bank will not help him until he is in arrears, is our only option to cancel the direct debit, which will prevent my son incurring bank charges, and wait for them to contact us and then make suitable adjustments to his repayments?
He did take out their gold insurance protection, but this is no good as he has not been made redundant!:mad:

Rafter

Sounds like a fairly typical response.

I suggest you only communicate in writing from now on and that instead of simply cancelling the direct debit, he makes a manual payment each month of what he can reasonably afford.

A site like this might help him to put together a statement of affairs.

http://www.makesenseofcards.com/soacalc.html

Unless you can help him, he will probably end up with a default on his credit file which will make borrowing harder in the future. Is there anything he can sell to raise the money to repay the loan or even keep up payments on it short term until his income hopefully improves?

Good luck

R.

Robert_Sterling_3

posterpaint wrote: »

The Bank will not help him until he is in arrears, is our only option to cancel the direct debit

No.

Could you put some money into his account each month so the the DD could continue?