ADVICE needed on Loan and CC payments freeze

Richlove_2

Dear all, I took a £16,000 loan and now the balance outstanding is £9,000. I also have two credit cards of £3,000 and £9,000. I got into this debt because of childcare cost , fees and investment projects.

I lost my job in June and ever since I've still kept up to date with my payments, however, I started a part-time course last year. I still have a year to go but I need all the time I could get for my studies and so can't start a new job now.

I plan to negotiate with my lenders to freeze my account for a year with no interest added but I don't want this to affect my credit rating as well.

Please advice me as to how to proceed.

Rafter

Rich,

You cannot default on a credit agreement without expecting your credit rating to be trashed for around 6 years - sorry.

Get a debt charity such as cccs, national debtline or citizens advice to help you with the negotiation.

Good luck

R.

Fonz_2

It depends how kind your lenders want to be - some will negotiate, some simply will not. You'll need to keep up the payments they require in order not to damage your credit history.

Clive_Woody

Richlove wrote: »

I plan to negotiate with my lenders to freeze my account for a year with no interest added but I don't want this to affect my credit rating as well.

So you want to stop making any payments for 12 months, you want them to stop charging any interest during those 12 months, and you also want them to make no mention of this on your credit files so that future lenders can be made aware of your repayment history.

I don't mean to be rude, but I admire your optimism.

Do you have a job waiting for your when your studies are complete or do you have other plans on how in 12 months time you will be able to re-start payments should they agree to this?

Richlove_2

Thanks for your contribution Clive. I do understand that some of the lenders are a bit sympathetic to their borrowers and would do anything to help them in times of difficulty.

Yes I would like them to freeze the account so they don't add on any accumulated interest. I wanted to know the opinion of some of the experienced bankers whether it is a possibility before I go ahead with my proposal to the lenders.

I do plan to take up a new job after the twelve months to continue repayments from where I left off.

But my main question is do you think they'll do it?

Thanks for your time.