Please Help need info on a loan

bambi22

i am currently expectanting a baby and need to re jig my finances about as the maternity pay is shocking. i had a loan with my bank and when i moved home i thought it would be a good idea to up the payments to clear it quicker. however now that i need to lower the payments they cannot do this.... i need to find a loan company where i can refinance the old loan but for less payments over a longer period. i dont want to go to a debt management plan or go through an IVA as i know this will affect my credit. i am in such a pickle and really dissapointed that my bank cant help when i have been a loyal customer for over 10 years and never missed any of my loan payments and now i am moving out and going to have a baby i really need the payments to be as low as possible untill i return to work and they cannot help at all

bargainbetty

You need to work out what your income will be, so what is affordable in the way of repayments. If you are returning to work then you may be able to increase your repayments after that time, so try to find something with small penalties for early repayment.

Have you asked them for a payment holiday, rather than reduced repayments?

Without more infomation (current salary, current debt level, specific questions etc) it is hard to know what you would be looking for.

randomnut

You don't need to go with a specific 'refinancing company', just see if you can take out another loan over a longer period with any of the providers, And make an overpayment on your existing one to clear it off.

Do the usual research though and use comparison sites for the lowest rate.

bambi22

thanks but because it is an unsecured loan as i dont have a mortage it wont let me take a payment break i will be off work a maximum of 6 months purely for the fact i cant afford to be off any longer and need to return to work. i have tried tesco loans to see if i could take an amount out and pay it over 7 or 10 years but they are saying that it is 2 long. no one wants to seem to lend you money so that u can re finance your existing debts making it easier for you and i woundnt mind but i dont have any ccjs, or bankruptcies so i cant understand why it is proving so difficult

CLAPTON

bambi22 wrote: »

thanks but because it is an unsecured loan as i dont have a mortage it wont let me take a payment break i will be off work a maximum of 6 months purely for the fact i cant afford to be off any longer and need to return to work. i have tried tesco loans to see if i could take an amount out and pay it over 7 or 10 years but they are saying that it is 2 long. no one wants to seem to lend you money so that u can re finance your existing debts making it easier for you and i woundnt mind but i dont have any ccjs, or bankruptcies so i cant understand why it is proving so difficult

what is your income
what are your debts
how much are your trying to borrow

Mara69

Could be that you are trying to borrow too much. Although you say you are planning on consolidating, the bank only have your word for that - to them you will owe your current loan + the new loan.

What is your income, how much debt do you have outstanding and finally how much do you want to borrow?

bambi22

i am wanting to borrow about 14k which covers a loan and 2 credit cards. then i can have one simple monthly payment.
my income is about 22k a year before tax.

however when i go on maternity leave in september i only get paid 90% of my full time wage for 6 weeks and after that i will be getting SMP at £134.00 per week i can only really manage to stay off work for 6 months as i am going to have to return to work to ensure i can afford to live and pay bills etc. which is a shame as most people take up to a year off.

CLAPTON

assuming your existing debts are 14k and your income is 22k then there is no realistic chance of getting another loan.

any lender will see your total debt exposure of 14K + 14k =28K ; even though you intend paying off the 14k the lender can't guarentee that you will.

generally it's seen that debt should be less than half your income so you are already over the 'safe' amount.

can the father of the child provide some financial support?

McKneff

People take time off according to their budget to be honest.

Is there any reason why you cant go back to work after 3 months.

I know it will be hard leaving baby but its a case of needs must.

Is the babys father not in the picture. If not get on to the CSA.

If he is, what is his income.

ILW

bambi22 wrote: »

i am wanting to borrow about 14k which covers a loan and 2 credit cards. then i can have one simple monthly payment.
my income is about 22k a year before tax.

however when i go on maternity leave in september i only get paid 90% of my full time wage for 6 weeks and after that i will be getting SMP at £134.00 per week i can only really manage to stay off work for 6 months as i am going to have to return to work to ensure i can afford to live and pay bills etc. which is a shame as most people take up to a year off.

People who have not run up a ton of debt sometimes take a year off because they can afford it.

Apples2

bambi22 wrote: »

. then i can have one simple monthly payment.

Oh! no!!
I thought that term had died off along with the First Plus, Picture, Ocean Finance adverts.
It might be one payment but it is far far far from simple.....