bit stuck..

jjculver

hi all, new here!

My situation is that I have recently bought my first house, and the mortgage along with my car repayments and everything else are beginning to get a bit much.

I pay £275 a month on my car, and if i could just bring that down to say, £150 i think I would be ok.

At the moment I am running out of money by the 1st of each month having been paid on 25th, and ending up with a load of bank charges.

I did have a lodger, but he has since moved out, and for the next 3 months I am on my own until my girlfriends lease runs out and she moves in.

My car is worth about £7000 and would be happy to sell it and get an old banger, but I owe £11,000 on the loan.

What I want to know really, is if I write to my car loan people (Barclays Partner Finance), tell them I can not afford the current repayments, what will happen? Will they lower the payments, will the term get bigger? Most importantly, what will it do to my credit rating?

I am a bit stuck...

I thought about selling my car for £7k, getting another loan for say£5k at a decent interest rate, and using the extra 1k for another car. That is the back up plan.

Any ideas people??

Thanks,

Jamie

cottonhead

All you can do is phone and ask if they will consider lower payments even if just on a temporrary basis. Its better to call and explain now than wait until you get in arrears. Preserve your credit rating if you can.
I was in a similar situation and managed to hand the car back and have the loan written off. That can usually be done but depends how long you have been paying and how much is left to pay. That would then give you a fresh start.