Loan - What approach to take?

PGTipz

After a spell out of work I am now back and very slowly catching up...but not quick enough. I have an inland revenue debt of 4k that is becoming a source of worry. They have been quite nasty, talking about bailiffs etc when I speak with them.

My incomings at the moment though have been concentrated on getting my bills back to scratch. Mortgage, car, gas, electric and a loan.
They are only out by a month or so and I am speaking terms with them all and they know the issues. However I'm thinking a short term loan would give me the breathing space to make the inland revenue payment and take a lot of the stress away from the whole situation....and let me start saving again instead of fire fighting.

Obviously having missed the odd month here or there my credit score is considered 'fair' at 384. I have a mortgage on a house of 160k value about 210k.

I am looking for a loan in the 3 to 5k bracket, payble over 12 to 18 months. Given my current credit score am not sure who might lend?

The whole things is stressing me out and giving me sleepless nights etc.

Anyone got any suggestions for a loan/approach?

Rafter

You need to treat all your creditors (including the inland revenue) fairly.

Fill out a statement of affairs and work out how much you can realistically pay to clear the arrears on all your debts and a plan on how you will achieve this.

Send this to the inland revenue and your other creditors demonstrating how you will be fair and how long you think it will take.

If you want some impartial help then speak to national debtline, cccs or citizens advice.

If you cannot realistically get everything back on track then a formal arrangement might be an option, however you have a lot of equity in your home, so your creditors might insist that you sell up and downsize so you can pay them off.

A loan is going to be tough to get given that credit score, even though it is probably the 'best' option in terms of giving you a manageable payment to get everything on track again.

Good luck

R.

PGTipz

Would a secured loan be a reasonable option here? Repayment is not a problem.

~Brock~

I am not sure how long is has been going on for, but you need to keep on the right side of the tax man whatever you do.

For all the rhetoric from the government about how they require lenders to treat their customers fairly, they are the worst when it comes to recovering monies owed to them, and ensure that any 'Treating Customers Fairly' requirements do not apply to tax bills !!

They should be prepared to accept a reasonable monthly payment, and will set up a regular direct debit to cover this, but you need to speak to them quickly about this and make it clear that you are not avoiding payment but are treating it as a priority.

Only as a last resort consider taking on a loan for the tax bill, and incurring extra interest charges as a result.

Rafter

A secured loan, or even cheaper a further advance on your mortgage might be an option. Secured loans are not very competitive and come with very nasty fees.

You may need to go through some hoops to get it approved and to demonstrate affordability given your credit score though.

Good luck

R.