Help needed

Mike_24

Just over 2 years ago, I was in a little financial trouble and took out a loan of £3,000. When it came to start repaying the loan, I was unable to afford it and panicked. Since then I have had several addresses and phone numbers so I no longer have either a bank or debt collector chasing me.

I desperately want to sort this out but have no idea where to start. I cannot pay any kind of lump sum off and would only be able to pay installments similar to that originally agreed.

My other problem is my job. I've now been in a stable job for about a year and a half. The problem is that it's in the financial sector. I'm pretty sure that if I have to declare myself bankrupt or end up going to court over this then I will lose my job.

Please help. I can't afford to lose my job, but I want to fix my debt problems.

Rafter

Mike,

I don't think the lender would declare you bankrupt for £3,000 and a judge would look unfavourably on a petition if you showed willingness to repay in a reasonable time frame.

You should check to see your credit file to see whether a CCJ or default has been registered against you - certainly if you changed jobs or if you employer checked, that could lead to a difficult conversation for you.

You then have the issue that in 4 years time, the debt will become statute barred meaning you may never have to repay - however you run the risk that they do catch up with you and you end up causing yourself an employment problem.

The £3,000 you borrowed could now be £5,000+ with accrued interest and charges too.

What is your current credit record like? Could you get a loan for £5,000 say and then call up the loan company you make the initial loan from and offer to settle in full. I'd suggest the original amount borrowed, plus 2 years interest at whatever rate the loan was and see if they will waive any charges.

Good luck.

R.

_Andy_

Mike - you need to get in contact with them and agree a repayment schedule.
There isn't a need for bankruptcy.