Loan Repayments whilst on maternity leave

fairy_Dust_5

Hi

I am wondering if anyone can advise me on what to do next.

I am due to start my maternity leave next Friday and I have a personal loan with the Bank that I have been paying off monthly.

This loan has in the past been with the Bank's credit department when I fell ill and could not meet the repayments. Since then I have managed to keep up repayments.

I contacted the Bank to alert them to my impending maternity leave and to ask to reduce my repayments credit for the next five to six months.

The Bank refused and referred me to the CCCS saying that I was in financial difficulty and would need the CCCS to contact them to arrange lower repayments on my behalf. The CCCS have helped me put a budget plan together but I have to approach the Bank with it and they have told me that the Bank will put a default notice on my account which will affect my credit rating. i am currently doing an AAT course and cannot jeopardise this.

Does anyone have any advice that they could offer me as I will be able to pay the full monthly installments for the next two months and will be back on full pay by the end of next March.

CLAPTON

basically it's normal for lenders to default a/cs where the contractual repayments are not made.

have you checked your credit records to see whether the previous situation is recorded?

is there no-one else who can help you maintain the monthly payments.. if your credit files are currently in good shape it would seem unfortunuate to damage them for the sake of just a few months.

BigDave81

If you can't pay then a default will be noted, no way round it.

Is the babies father about to help out with the payments, if not will he be paying the maintenance that he should rightly pay which can go towards the loan payment?

Tiddlywinks

I know it sounds harsh but WHY choose to have a baby when you must have known this would impact on your abilty to service your debts.

Shouldn't you have made budget provisions before expanding your family commitments (as babies are not cheap to run!).

Why should the bank make allowances for you when your situation (bringing along another mouth to feed) is of your own making?

fairy_Dust_5

Tiddlywinks - I don't know why you would make such unhelpful comments. Are you suggesting that I should have had an abortion because I have one debt? My partner and I have been saving but as you yourself state babies are not cheap to run so how do we know that we have saved enough? I suppose you think that when I fell seriously ill and the Bank was equally unhelpful (my loan protection did not conveniently cover my illness) I should have made allowances for that as well. The Bank has even suggested that I give up my job to claim benefits so that they can help me. Funny how they would be willing to make allowances for my situation if I was unemployed and bringing another mouth to feed into the world!

fairy_Dust_5

Clapton - Thank you for the information. I have enough money to make the full payments for the next two months and the CCCS seem to think that I should be entitled to a repayment holiday so really it is just a matter of sustaining the payments until April. My family is willing to help and we have been saving but my worry is what if I should fail to make any of these payments during my maternity period for any reason. The Bank are not exactly being helpful when it comes to the information they require or (the goal posts keep moving) my partners contribution/help from family. I find this a little odd. Surely as long as they receive payment why does it matter where the money comes from?

fairy_Dust_5

BigDave81 - Thank you - The babies father and I are still together and he has saved quite a bit of money for when I go on maternity leave but the problem is that I earn quite a bit more than him which is why I made the enquiry of the Bank in the first place, just in case we have not saved enough. I wish I hadn't been so honest and had just waited to see what happens.

ILW

fairy_Dust wrote: »

Clapton - Thank you for the information. I have enough money to make the full payments for the next two months and the CCCS seem to think that I should be entitled to a repayment holiday My family is willing to help and we have been saving but my worry is what if I should fail to make any of these payments during my maternity period for any reason. The Bank are not exactly being helpful when it comes to the information they require or (the goal posts keep moving) my partners contribution/help from family. I find this a little odd. Surely as long as they receive payment why does it matter where the money comes from?

You are not "entitled" to a payment holiday unless it was in the terms of your loan. You are entitled to ask for a payment holiday and the lender is entitled to say yes or no.

Tiddlywinks

fairy_Dust wrote: »

......Are you suggesting that I should have had an abortion because I have one debt? No, where have I said that:mad:????? BUT, you didn't HAVE to get pregnant at this time did you? You decided to add to the size of your family unit (and consequently increase its running costs).

My partner and I have been saving but as you yourself state babies are not cheap to run so how do we know that we have saved enough? Use the savings to pay your debts then! You should have done the sums before getting pregnant.

I suppose you think that when I fell seriously ill and the Bank was equally unhelpful (my loan protection did not conveniently cover my illness) I should have made allowances for that as well. Serious illness is not the same as choosing to have a baby.... However, the way you portray this situation suggests that you always see yourself as a "victim".

You placed yourself in this situation, try to accept that. It may sound harsh but as a borrower you either pay your bills or you take the consequences! I would be more sympathetic if you had exercised a bit of prior planning.

fairy_Dust_5

Hi Clapton

I have since managed to speak to a Supervisor at the Bank who has been most helpful and actually listened to what I have to say. We have been through my income and expenditure together and it looks like I may not need to lower my repayments after all. I am also entitled to a repyment holiday which will help. If I could only have spoken to him in the first instance I would never have posted my query on this forum but I would just like to say thank you once again for your input and advice. It has been most helpful.

fairy_Dust_5

I have accepted my situation. I have never asked anyone to pay my debt for me, not even the Bank. By asking if I could lower my monthly payments in the short term was just one solution to trying to maintain payments whilst on maternity leave. I did not ask for yours or anyone elses sympathy. That is not why I came on here.

......Are you suggesting that I should have had an abortion because I have one debt? No, where have I said that:mad:????? BUT, you didn't HAVE to get pregnant at this time did you? You decided to add to the size of your family unit (and consequently increase its running costs).You may not have said those exact words but what exactly are you implying when you state that I didn't have to get pregnant at this time? Where have I ever stated that it was a conscious decision to start a family now? Nowhere. I suppose this is where you are going to tell me that I have been irresponsible. I don't know if you are aware but it doesn't matter what precautions you take, sometimes nature has way of altering your plans. I would like to know what you are suggesting I should have done? Adoption perhaps.

Use the savings to pay your debts then! You should have done the sums before getting pregnant. I think you will find that we did do our sums when I found out I was pregnant but most financial institutions have there own figures set out as to how much they believe adding a child to your household will impact on your finances. Up until now I have been told that the figures we supplied are not valid. That is until my final conversation with the Bank. I did not see you offering any advice as to how much you think a baby might cost in it's first year. In fact I didn't see you asking any questions at all that might have given you a better understanding of my situation.



Serious illness is not the same as choosing to have a baby.... However, the way you portray this situation suggests that you always see yourself as a "victim". I am so glad that you are able to form such an inaccurate picture of my character from one response. I find it very interesting that you have managed to offer no practical advice. However, you seem to be very quick to judge without due cause. Why is that? I came to this forum for practical advice not to gain sympathy and certainly not for a character assassination.