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Interest
Fruitloops
Posts: 887 Forumite
in Loans
I am due to have a meeting with a debt advisor on Monday but I thought I would ask for opinions on here too.
I took out a loan with Lloyds in 2004. I did get into financial trouble and avoided these problems which ended up with me having arrears on my account. However, near the end of 2005, I began to make small regular payments which I actually upped by a significant amount about one and a half years ago. To keep this payment agreement active, I had to speak with the Collections Centre every 3-6 months (the branch won't speak to me) to ask for the agreement to be renewed. So I've been paying regularly for a long time now and the only time anything got messed up was down to Lloyds doing something like taking two payments instead of one.
Now when I began to make regular payments, I knew there was quite a lot of interest gathered on the arrears amount. I asked for this to be frozen when I arranged the payments and I was told it would be. Whenever I have received letters from the bank, it mentions a 'reminder' at the bottom that I am still gathering interest on the arrears. Every time I speak to the Collections Centre, they say either they will stop it or it isn't gathering interest.
Well, it is now very clear to me that at least two thirds of it is interest
The whole time I've been paying I have struggled so much to make the payments and it seems it hasn't done that much good. The balance goes down slightly but the arrears amount rises. And they are now close to each other in number! I have now stopped paying (this month) because I simply can't afford the amount I was paying. But I decided to go to the CAB before asking for lower payments to get their support and to ask if I can do anything about the ridiculous interest.
I'm so sorry for blabbering on
I won't blame anyone for not reading this... I just had to get it out as I've had it bottled up so long.
I took out a loan with Lloyds in 2004. I did get into financial trouble and avoided these problems which ended up with me having arrears on my account. However, near the end of 2005, I began to make small regular payments which I actually upped by a significant amount about one and a half years ago. To keep this payment agreement active, I had to speak with the Collections Centre every 3-6 months (the branch won't speak to me) to ask for the agreement to be renewed. So I've been paying regularly for a long time now and the only time anything got messed up was down to Lloyds doing something like taking two payments instead of one.
Now when I began to make regular payments, I knew there was quite a lot of interest gathered on the arrears amount. I asked for this to be frozen when I arranged the payments and I was told it would be. Whenever I have received letters from the bank, it mentions a 'reminder' at the bottom that I am still gathering interest on the arrears. Every time I speak to the Collections Centre, they say either they will stop it or it isn't gathering interest.
Well, it is now very clear to me that at least two thirds of it is interest
The whole time I've been paying I have struggled so much to make the payments and it seems it hasn't done that much good. The balance goes down slightly but the arrears amount rises. And they are now close to each other in number! I have now stopped paying (this month) because I simply can't afford the amount I was paying. But I decided to go to the CAB before asking for lower payments to get their support and to ask if I can do anything about the ridiculous interest.
I'm so sorry for blabbering on
I won't blame anyone for not reading this... I just had to get it out as I've had it bottled up so long. Out of my mind. Back in five minutes.
0
Comments
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We really need a bit more details here
I would, however, suggest you post on the debt free wannabee board as people there are very knowledgeable and supportive
and post up a SOA ..format here
http://www.makesenseofcards.com/soacalc.html0
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