Bank loan pressure

emotionalcontent

Hi

18 months ago I took out a loan to consolidate existing debts of £12,000 and pay of a £2000 overdraft. I asked that the bank give me a new overdraft limit of only £200. They agreed to to this.

However, my limit was kept at £2000 and being the fool I am, I am now upto £2000 again and the bank wish me to take out another loan.

Obviously each loan has higher interest rates than the previous and they won't lend me just the £2000, they insist on bundling it in with the amount I still owe on the original £12,000

I have to ring them later.

What should I do ?

Cheers

AMILLIONDOLLARS

Don't take out another loan! You could try to reduce the OD over a period of time say 1900 this month then 1800 the next, why don't you pop over to the Debt Free Wannabe Board, the folks there will help you with your budget and give you lots of advice to set you on the road to being debt free without consolidating again.

Good luck

PS you haven't said what interest rate you'll be paying and for how long, add that all up and you'll be shocked:eek:

AMD

emotionalcontent

Cheers mate. What's the best way of politely saying "No. Please stop pestering me". I don't want to annoy them.

You are right steps need to be taken to curb my spending and get my house in order.

AMILLIONDOLLARS

I'd say thank you for your kind:rolleyes: offer, but at this point, I do not wish and I am sure that the bank also do not wish me to over extend myself by taking out another loan. Plans have now been put in place and I wish to reduce my overdraft by £100 on a monthly basis, until such time I inform the bank otherwise. Thank them once again and offer to review this situation this time next year!. Hopefully by then you'll have got your spending under control.

Good Luck

AMD

emotionalcontent

Cheers guys. I wrote to them in the end saying pretty much that. I was polite and deliberately non-aggressive. I asked them to reduce my overdraft by £30.00 per month though.

Gemmadm

Hi you could maybe get a new bank account but keep the other open and have your income and loan took out of the new one and what you have left you could put into the overdraft account so you can see how much you are clearing of the overdraft so it doesn't get mixed together. I'm kind of doing this but with just a few extra things still going into the old account as well.
Gemxx