Unsecured loan with judgement

pammii

My ex and I took out an unsecured loan several years back. He was supposed to be paying it but unknown to me wasn't. Although it did not get as far as court as I agreed a payment with them, it has a judgement hanging over where if I default on the arrangement they will take me to court straight away.

Question -

Should this loan still be accruing interest or not. I am taking advice from CAB about this but wondered if anyone here can advise.

Thanks.

Emmzi

why would the lender not want interest in return for you having their money?

opinions4u

Of course it should still be accruing interest.

What makes you think it shouldn't?

Why would a lender want to reward you for failing to pay on time by stopping charging interest?

pvt

If you're in a dire financial state and cannot afford to pay this then you need to arrange an IVA or DMP, or whatever, to get the interest stopped. But that will obviously be recorded on your credit history for 6 years, much the same as the CCJ you're trying to avoid. So it's a turd with a different shape and smell but, nevertheless, still a turd...

pammii

Just an update on this thread to say the CAB are helping me with this situation. They are prepared to reduce the interest by 2% for the next 2 payments with a view to freezing the interest. The CAB worker is still persuing the question of interest being added since the date of judgement.

Buzby

You'll need to define what 'freezing' interest actually means. To me, it means the interest being charged will not increase. not that it will be removed. I am assuming this was a JOINT loan, where you both signed for it?

pammii

Yes, it is a joint loan but my ex has left me a year ago and not paying anything towards it or responding to anything so I have been left with it all. My CAB advisor seems to think the freezing means stopping it.