please help loan company massive charges

nige007

hello,
I am at my wits end my husband got into credit card debit on his personel card he used for his company expenses, not good but this is how his old company worked spend on card then they gave you the money back next month.ie. air flights,food,taxis etc.

To cut along story short he didnt clear off all the money when he received it and ended in debt, card maxed and not enough to buy a flight he needed for work one month. So scared he would loose his job we took out a secured Loan or mortgage on our house in both our names.

This company we borrowed from has changed their name 4 times in one year is this allowed???, and the charges for missing any payments are going up and up. We missed 3 payments of 64-00 and they keep adding on so many charges now, its now at 350-00 arrears due to the charges and today they send a letter saying while in arrears they will add 85-00 per month. We dont know what to do we are sinking and cant pay this arrears and they are just adding and adding to it with charges. I am so scared about them taking our house.

I dont know what to do the secured loan was originally 7,000 over a 20 year period to clear his credit card. We took this option as he had a bad credit rating and no other would lend.

What can we do please help.:(

CHR15

There must be more to this. I use a Company AMEX without a limit for Business expenses and I know how it can pile up very quickly.

At some point he must have been able to reclaim all those expenses so the bulk of what was spent would have been refunded by the company.
This would have left only the interest payments to cope with, certainly no need for any secured borrowing.

Sorry but it sounds like he has been spending on the card for himself, not company expenses.
{EDIT} Sorry, I just read your post properly and saw that he didn't clear it once refunded.

In future he could ask his Company for an advance of pay to cover the forseeable expenses, some of our younger guys do this or even the older ones who know there is a big chunk coming (for flights/hotels).

The way forward is to contact the CCCS for free debt advice, they will help deal with your creditors. Don't delay this, you are risking your home each day you delay. Make it your number one priority.

nige007

Thanks Chris, yes he did also have a little personal borrowing on the card too but only 95.00, the company he then worked for was in Usa and this is how they worked, if the employee didnt clear the balance in full then the interest would mount up,ok if your sensible and organised at all times?, this company have since folded, and thankfully the new company he works for now have a business credit card he uses for everything all managed and paid for by them, a much better idea, and the only expences he needs to claim are a daily lunch allowance only.

I cant beleive the mess we are in, this loan co we borrowed with are very harsh and wont budge on holding off any charges, i will need to contact someone for help i will def try these people you suggest, we had hoped to sell our house and move and clear this loan soon after, but house sales arent good here and i cant see that happening now.

Secured loans are such a bad way to go but it was his pride and worry of losing his job if he didnt book a flight that made us do this.

Hobbit56

Have you thought of speaking to Citizens Advice or one of the other debit charities (like Payplan) for advice???

They don't make any charges and are really good non-judgemental listeners!

BAILEYS6904

I would be tempted to head on over to Debt Free Wannabee Forum and post a Statement of Affairs there, It will give you (and others) a clear view of what money is going where, what can be cut down on, priority debts and most of all a clear plan on how to get sorted as quick as poss xx

ViolaLass

Have you been refunded for the flight by the company? That should have cleared most of the loan. How much was left?

chalkie99

There are things here I cannot quite understand.

He was scared of losing his job if he couldn't buy an air ticket but instead of just borrowing enough to cover that, which would presumably have been re-imbursed the following month, you took out a loan secured on your house!

Now, if he has a job which involves taking flights on an expense account I cannot imagine he is exactly on a minimum wage rate - so why would you need to take a period of 20 years to pay back a £7,000 loan?

Something just not adding up here. :undecided

CHR15

ViolaLass wrote: »

Have you been refunded for the flight by the company? That should have cleared most of the loan. How much was left?

I was confused at first, the OP's husband was reimbursed for his expenses but he spent the money on something else instead of clearing the Credit Card he was using for Company expenses.

This has left them in a hole with the credit card balance increasing until it was maxed out, simply by not using the expenses to clear the CC.

The whole Company expenses part is a bit of a moot point, this is simple mismanagement of money and debt problems.
Due to the Secured nature of the debt, this needs to go to the CCCS for professional help, as soon as possible.