asking to hold intrest

welshcrow

i have a loan and the monthly payments are high around £490.
i was ok to make these but recently my hours and pay + overtime has been cut, i have gone from £23,000 down to £13,500. i cant afford to keep paying this monthly ammount as i have 1 child with another due september, we dont get much in the way of benefits, i would like to ask the bank about stopping the intrest and just pay what i owe,
how do i go about this
any help would be great
thanks in advance

Fiddlestick

welshcrow wrote: »

i would like to ask the bank about stopping the intrest and just pay what i owe,

Under the loan agreement that you signed that IS what you owe though.

What might be an idea is to call the bank up and explain that your financial situation has changed and ask if they are willing to refinance your loan and see if there is some way to reduce your payments that way.

Do you have any savings that you can use to overpay and bring the principle down?

What about your partner?

standupguy

welshcrow wrote: »

i have a loan and the monthly payments are high around £490.
i was ok to make these but recently my hours and pay + overtime has been cut, i have gone from £23,000 down to £13,500. i cant afford to keep paying this monthly ammount as i have 1 child with another due september, we dont get much in the way of benefits, i would like to ask the bank about stopping the intrest and just pay what i owe,
how do i go about this
any help would be great
thanks in advance

Unfortunately banks do not let you off paying the interest if your circumstances change.

Your best option is to phone the bank and advise them of your change in circumstances and enquire whether the loan can be re-written over a longer period to reduce the monthly payment. In the end you will pay more as more interest is added but if you can service the new payment it will keep you out of getting into arrears.

Otherwise ask them what they can suggest to ease the burden - I suspect the best you will get is a lower payment for a short time if there is any chance of getting back to more pay and the original monthly payment.

Tixy

Hi welshcrow

If there is no way you can meet your monthly repayments then it might be worth posting for advice on the debt free wannabe board. If you expand on your financial situation and post up a statement of affairs the posters there may be able to offer some suggestions to you. If you have a number of debts you cannot pay there may be a possibility a debt management plan which would mean you were paying less to your creditors but it would be at the expense of your credit file for the next 6years.

Have you checked you are getting all the benefits you can, claimed tax credits based on your reduced salary etc?

clare1076

We are currently in the same situation, my husband has been in touch with the bank and they say there is nothing they can do to help us until we are in arrears with the loan. This isn't really what we wanted to do we would rather have worked something out to stop that happening.

My husband is now self employed after losing his full time job and isn't earning what he was, its a nightmare we have kept the payments up so far but its looking like we may have to miss a payment this month.

Good luck your bank may have a different policy to ours.

undaunted

Write to the bank detailing your incomings, outgoings, any other debts and what you are offering each.

Priority debts - eg mortgage, electricity, gas, taxes, court orders / fines etc need to be paid first & in full where possible. Your remaining surplus income over expenditure (if any) divided up between your creditors on a pro rata basis (ie someone owed £10,000 would get 10 x the offer of someone owed £1000).

They will then either accept or reject your offer (depending upon how reasonable your financial statement appears), may or may not be willing to hold interest for a period etc

Good luck

PNPSUKNET

can you ask your new partner for help?