unsecured bank loan

ginandorange

someone help :eek: my husband took out an unsecured bank loan of £25,000 2 1/2 yrs ago, hes never missed a payment recently we are struggling to pay it we have rang the bank and went into to see them about it they said because its a 10yr loan and theres only 7yrs left theres nothing they can do we asked them to extend it and lower the payments but they wont help at all she said the only thing you can do is default ... what kind of advice is that.. if we were to default what would happen, we want to pay the loan but lower the payments we need desperate help as we dont want a charge going on our house we went to citizens advice and unfotunately the woman there wasnt clued up on it , my husband is getting ill and depressed about it ...anyone got any ideas how we can resolve this thanks

michael1983l

Ring national debtline on 0808 808 4000

http://www.nationaldebtline.co.uk/agency_information.php


I suggest you get a statement of affairs sorted out with these guys, which will indicate exactly how much you can afford to pay. Send the statement of affairs to the bank by post and tell them you are suffering financial hardship as a result of your loan payment and that you would like to make arrangements to pay for the time being as much as you can afford until your circumsances change. If they are a credible bank they should agree to this, as they are required by law to take steps to help people in times of financial hardship. National debt line will tell you the inns and outs and will even do the SOA (statement of affairs) for you and send it to you by post.

CHR15

I don't think there is anything you can do which would avoid a default.

If it were that simple and the banks really were that sympathetic, everyone would be queueing up to pay their £5k loan over 15 years to reduce the repayments.

A default is seen as proof that you are struggling and not just trying to wrangle an easy way out, the Banks profit is based upon your continued repayments in accordance with the terms. Stretching this out longer affects the bank as a business as they aren't getting the same returns over the same period.

As SOA will help but I feel anyone could write anything on it so it is unlikely to be looked at in any depth until you are already in default and have something to back the facts up with.

If you walk in wth an SOA which includes Sky Tv, Broadband, Mobile phones, holidays, 2x cars etc it suggests the reason for reduced payment request isn't due to financial hardship, moreover to protect your standard of living.