Help and advice need as soon as possible.

Skint82

Hi Guys,

If yous can help or give me more info I would really appreciate it. Dont know where start really, basically I had planned overdraft that finished few days ago and phoned my bank to arrange paying back as I cant afford to pay it all. Its changed from £650 to £450. So owe £200 which isn't to much. Now what makes it more complicated is I have loan with them too. That is 235 a month, think roughly £7600 owed on it.

Now when I called I got some sort customer care person. As we spoke, he went through all my in and outgoings which are not the best. After going through it he came up with new plan that I'm not to sure about. The plan is to up my overdraft to £900 to give me breathing space and then change my loan repayments to £66 for 6 months then be a review took on my account after 6 months then discuss what to change my repayments too. My account will be put in arrears which I don't know to much about.

So what asking is how serious is it when your put in arrears? How bad is it
for credit record, long is it on.....

My credit rating is pretty bad at the moment but I don't have anything like arrears, debts unpaid, etc. My plan this year was to keep my head down and try get credit rating up.

If its not to serious and won't affect me for to long then happy go for it because would help but if its going to affect me for couple of years then I don't fancy it. I did offer to pay so much a month, which I have done before but there only giving me this one option!

Sorry for long message! But any help or advice would be excellent.

Cheers

Reason why need answer soon as is so I can make decision, at moment I am incurring bank charges

wayne99

if you go more then one payment behind this would have a bad effect on your credit rating.

If you enter an arrangement to repay at a rate that is not your normal repayment, you will more then likely have an "AP" marker placed on your credit file (Arrangement to pay) this is not good, this will stay on your credit file for 6 years i believe and will have a negative effect on any future credit applications.

I would get yourself over to the debt free wanabee board, and post a SOA (statement of affairs) the peeps over there are a fantastic bunch, and could try and help you with your outgoings and try and see if there advice could save you a few quid, banks are ok but they just want there money at the end of the day and will not inform you of the concequences of arrangements to pay, or help you with your outgoings.

pop yourself over to the dfw board seriously.

wayne