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A&L Loan - Default or No Help!
Hi - My sister is trying to reduce her payments on a 4 year personal loan with A&L [now Santander]. Her circumstances have changed and had hoped to re-negotiate her 3 years remaining on her personal loan to a 5 year term in order to reduce the payments and enable her to keep her head above water.
She has not missed any payments on any credit including mortgage at any time in her life but since her circumstances altered is finding it difficult to meet the payments each month.
She asked Santander if the remainder of the loan could be consolidated over a 5 year term knowing she would pay more over the life of the loan in interest but this seemed the best option to reduce her monthly payments.
Santander replied they could not help unless she either dafaulted on the payments for 2 months OR asked for more money.
This seems ludicrous to me as she has contacted them before any problem occurs with the repayment and offered a solution but they will not discuss this until one of the above criteria is met.
She certainly doesnt want any more money from a loan and would probably be refused in any case as her application would probably be rejected due to affordability. As for defaulting this would seem to defeat the object of the exercise and certainly affect her credit score etc for the future.
I wondered if there is any other options she could take.
Thanks in advance for any advice.
She has not missed any payments on any credit including mortgage at any time in her life but since her circumstances altered is finding it difficult to meet the payments each month.
She asked Santander if the remainder of the loan could be consolidated over a 5 year term knowing she would pay more over the life of the loan in interest but this seemed the best option to reduce her monthly payments.
Santander replied they could not help unless she either dafaulted on the payments for 2 months OR asked for more money.
This seems ludicrous to me as she has contacted them before any problem occurs with the repayment and offered a solution but they will not discuss this until one of the above criteria is met.
She certainly doesnt want any more money from a loan and would probably be refused in any case as her application would probably be rejected due to affordability. As for defaulting this would seem to defeat the object of the exercise and certainly affect her credit score etc for the future.
I wondered if there is any other options she could take.
Thanks in advance for any advice.
0
Comments
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kbaud,
Can't think of any other options unfortunately,
If you sister is struggling to make loan payments then she should really get some advice from a debt charity or citizens advice who may be able to help her negotiate with her creditors or come to a more formal arrangement.
If things aren't quite that serious, the best thing might be to fill out a 'statement of affairs' and post it on the debt free wannabe board for advice.
Is your sister claiming any benefits she might be entitled too? Is there a family member who might be prepared to lend her teh money to repay the A&L loan at a lower rate or over a longer period?
Good luck
R.
http://www.makesenseofcards.com/soacalc.htmlSmile
, it makes people wonder what you have been up to.0
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