Recently taken out loan - now can't make payments -- help!!!

willow41

I took out an unsecured loan last dec and everything has come tumbling down on me... We started a build 18 mths ago but secured the money a few months before. At the time i was working then had a baby and never went back to work. The idea was to remortgage when the build was finished and then pay off the loans... Since the downfall in the market we have just had our house valued at £50,000 less as there is a suspected 25% price drop over the next year. Now we are stuck as we can't remortgage... The loans are excruiciating and last week i didn't even know how i was going to buy food. I missed the two payments as my bank manager told me that my priority must be my family. The loan company doesn't think the same. I am awaiting an appointment with the cccs on the 6th but the hsbc have told me today as the loan is new they could take legal action? Can anybody give me advice. I feel sick and cannot tell my husband because he is at his wits end...

jimpix12

Hi, You should probably post this in the DFW forum since people are generally more supportive there:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

(Not that people aren't supportive here, just saying you'll get a better response there! )

mrcow

Call the CCCS and get some advice today on what you should be doing whilst waiting for your appointment.

In the meantime, cancel all direct debits with regards to the unsecured loans and send them a token payment of what you can afford by cheque. In the letter, tell them that you are committed to repaying your loan but are having difficulties this month and so are sending a payment by cheque this month.

Do not call them - only deal with them in writing. If they call you, tell them to put it in writing. Do not give in to any demands for payments - if you cant afford to eat, then you can't afford the loan.

They'll usually only take legal action if they default you first - paying them a token amount should hopefully delay this. In the meantime, the CCCS are a brilliant start and will help you get through this.

willow41

Thankyou for your advice...

mrcow

The other thing I will say is that you do need to think about telling your husband in time. I know it's hard, but you simply can't take all this stress on by yourself.

At least think about it.

hermum

Hi-read my posts-under hermum, I'm in a similar situation. I do hope that you have better luck than me.

willow41

Hi there have read your posts. I think you should take a look at making a claim against them for giving you the loan in the first place....
We took a loan out in Dec but the process started in October. I was approached by a lady on the phone who said that she could offer me £75,000. I laughed and made a joke of if yu can sort my financial mess out right now it would be a miracle... We were in such a terrible place financially that I did't even want Christmas to come. Anyway the call came out of the blue. I gave her all of my details, told the honest truth and she still said that she could help me. Eventually she came back with an offer of £10,000. I went to hell and back with an offer then they said no I couldn't have it then it was a yes and so on and on... Eventually they even suggested that I if I paid off some of my other loan it wouldn't actually make a differnce to the monthly payments on that one. We used the £10,000 on paying stuff that we had got so behind on, credit cards etc.. we had no kitchen at the time so we put that in and that was that. When the money came through, they had upped the monthly payment too. Originally it was supposed to be £198 a month but they changed it to £260 a month. They took my income from my child allowance and tax credits.
I have just missed this months payment and they are on the phone giving me a hard time.....

mrcow

Have you called the CCCS yet?

willow41

Yes I have thanks and my appointment call is booked for Wednesday. So I am on my way t feeling a little less scared . Thanks for your advise x