Natwest Personal Loan - negotiate minimum payment?

jonrmayer

All,

I need some advice regarding renegotiating loan payments with my bank.

My current job is winding down and I have been unsuccessful in finding a new position. I have a personal loan of 7000 (taken out 6 months ago) - and I have 30 payments left of 243.68 pcm. The interest portion current stands at circa £80 pcm.

A Debt Relief Order is not particularly tempting. What I would like to do is negotiate a minimum payment that covers the interest payments for 12 months whilst I sort my life out. Luckily I have Dual British/Australian nationality and my skills are in high demand in Australia so I am confident that I could find a suitable job within a maximum of 12 months.


I suppose my question is - are banks in general or Natwest specifically open to this type of temporary arrangement. I need all my resources to make the move happen

Thanks in advance for any help.

paddyrg

Unlikely, and they may get extra twitchy to hear you're off to Australia where they will have a harder time getting hold of you.

jonrmayer

paddyrg - Thanks for replying.

Really - You do surprise me. The options are
1) I stay here - fail to obtain new position - fail to repay loan - I apply for Debt Relief order - bank loses entire amount and I end up with chronically bad credit credit rating
or
2)
negotiate reduced payments for year till I get new job. Loan takes 42 months to pay off rather than 30. I end up with moderately bad credit rating but bank gets all the money back. I am not trying to shirk any responsibility here for my commitments

I would have thought the banks would be more amenable to the latter option??

paddyrg

Maybe they will be, but if you find them less warm to the idea, consider that they could feel jumpy about you leaving the country where your debt is enforceable to one where it isn't (or not as easily afaik).

Guess it's up to you to convince them to give you a payment holiday :-D

redpete

jonrmayer wrote: »

The options are
1) I stay here - fail to obtain new position - fail to repay loan - I apply for Debt Relief order - bank loses entire amount and I end up with chronically bad credit credit rating
or
2)
negotiate reduced payments for year till I get new job. Loan takes 42 months to pay off rather than 30. I end up with moderately bad credit rating but bank gets all the money back.

plus, from the bank's point of view:

3) negotiate reduced payments for a year, move to Australia, stop paying anything, hope they don't find me.

Not accusing you of anything, just looking at the risks from their point of view.

jonesMUFCforever

1 Did you not take out PPI to cover redundancy?
2 They will not negotiate unless you are 3months in arrears.

jonrmayer

redpete


3) negotiate reduced payments for a year, move to Australia, stop paying anything, hope they don't find me

A very Good point - but in all honesty I could do that now without going through all this rigmarole - really am trying to acheive an "optimum solution" for all parties concerned


jonesMUFCforever

No PPI - was going to take it (1 motnh after loan) out then was informed of impending redundancy = no point taking it out (against T&C- foreknowledge)


"They will negotiate unless you are 3months in arrears." - This is interesting. Do you have any further information regarding this??

Thanks All

jonesMUFCforever

Most lenders will not think you are defaulting until 3 months in arrears.
Only then will they stick you in their collections service and negotiate a repayment plan - this will trash your credit history but may be a way out as long as you do not want any further new credit anytime soon.