Halifax won't lower loan payments ref me to CCCS?

Somerset

Okydoky25 wrote: »

I'm just asking why I can't simply pay less over a longer period without involving credit management companies?.

Because they don't regard you as a good risk ie you are unemployed and struggling.

Apples2

Okydoky25 wrote: »

why I can't simply pay less over a longer period .

Because it essentially means closing this loan account and starting a new one. Loans are a contract, it isn't easy to simply manipulate it's content.

It's very doubtful you would be accepted for a new loan over a longer period if ou are not working.

If you had taken this loan out over a different period from the outset, you would have been given a completely different interest rate to go with it.

If it were simple to do this, everyone would apply for the shortest term, lowest APR product and simply change it the following Month.

The only way you can genuinely prove you are in hardship and NEED to restructure, is to default and go with DMP/IVA etc. It would be far too open to abuse otherwise.

Macca83_2

Have you tried asking for a payment holiday? With some of their loans you can have up to 2 a year. Will cost you more in the long run but would give you some breathing space.
Another option is their money management team on 08456 03 90 50. They can offer advice if you're struggling to meet payments. There's probably a free phone number somewhere but i can't find it

Tixy

You can pay less over a longer period - but that will mean defaulting on the loan agreement.

You don't actually have to use CCCS, they've recommended that to you to try to help you. You could do the same thing yourself, that is to write to them, explain your change in circumstanes and that you can no longer afford repayments and can only afford £x per month. They'll probably ask you to supply them with an income & expenditure account, te same as CCCS would give them, that backs up the amount you are offering is all you can afford. Legally you don't have to supply this info, but legally they don't have to agree to your lower payment.
So you could do this rather than use CCCS, but you will have broken the agreement and will incur a default whether you arrange your own reduced payment or use one of the debt advice charities.

You say you don't want to jeapodise your credit history, but if you cannot afford repayments then its reasonable of them to put this on your file to show other potential lenders that you deafulted on the agreement.

opinions4u

CCCS will evaluated your whole position and prioritise finances accordingly.

It's a much more sensible option than Halifax agreeing a payment with you and then you prioritising other expenses anyway.

meer53

Because you have no idea how long this "temporary" issue will go on for, i would recommend speaking to CCCS to see what they suggest. Do you think it will be easy for you to get another job ? You say you were made redundant last year, do you have a new job lined up ?

If you've already called CCCS, what did they say ? It appears you didn't like their advice. The advice on here will be more or less the same as CCCS but without knowing the whole story, no-one will be able to offer anything different.

Whatever happens, if you don't find employment in the next few weeks, the result for your credit file will be the same, default on the loan and agree repayment proposals with Halifax or take CCCS's advice, which might involve a DMP or going down the default route. You really don't have any other options at the moment.