Halifax bank loan

ukmartian

Hi all , I have a Halifax bank loan with about 3 years left to run.....I did not take out PPI on it as it was a family loan which could be paid back between us all, or just 1. However i did not anticipate 3 off us all losing our jobs in the last 4 months (it happens) ....I have contacted the bank and explained the situation and been sent from 1 department to another money management dept...However they have told me they cannot do anything until i get in arrears....they then advised me to cancel my payments ..surely by doing this i will incur default charges and end up with even more debt ...if anyone can give me advise on this it would be very welcome....Steve...

Tixy

Its normal that they won't do anything to help until you fall into arrears. Once you do then you could write to them, explain the change in your circumstances and offer them a monthly payment at a level you can afford - you could also try asking them to freeze interest & charges.

They don't have to accept your offer (they could try court action) - but pay what you have offered anyway, and don't have to agree to freeze interest & charges, though some will if they can see you are paying all you can afford (they might ask for an income & expenditure statement). It will cause a default to be registered on your credit file, but if you can't keep up with payments then that is usually inevitable.

If you have a halifax bank account as well then you'll need a new one not connected to jalifax and need to close down your existing account - otherwise they will offset any money in the bank account towards the debt.