Should I walk away from Barclays resolve loan? is it a possibility??

Gaz2k21

Hi Guys,

Back on the 4th of August 2005 i took out a Graduates loan of £6000 with payments of £116.68 a month I kept this up quite well until I went traveling.
Unfortunately the post travel poverty got the better of me and I missed quite a few payments to the loan (2 or 3) I managed to get a job and barclays offered me a resolve loan of £7700 on the 5th of October 2007 this paid of the graduates loan and reduced my monthly payment to £113.07 with an annual interest rate of 7.79%. I've been paying this steadily ever since.

Due to some recent financial issues i started looking at how i can reduce my monthly outgoings and it seemed that alongside my car insurance (which is woefully high but coming down considerably in the next few months) this was one of my biggest outgoings (asside from ultra essentials like rent etc).

By my calculations I have paid £7979.88 of my loan to date which is more than the original amount borrowed...

I have heard that some people once paying the originally borrowed amount have halted all payments and managed to negotiate a much lower resolution fee is this something that can be done? I'm awaiting some paperwork from barclays so i can calculate the correct amount i have paid to Barclays for the loan so far but as it stands I apparently have £3349 still to pay which based on the interest rate will take me a further 4 and a half years or so to pay

DevCoder

You can walk away.

Expect DRA, CCJ's and a possible bankruptcy order. Then 5/6 years of credit ruin.

Why not post up a SoA on the Debt Free Wannabe board and they'll show you how to reduce your outgoings.

[Deleted User]

Gaz2k21 wrote: »

By my calculations I have paid £7979.88 of my loan to date which is more than the original amount borrowed...

Loans do have a habit of being like that.

Apples2

Gaz2k21 wrote: »

I have heard that some people once paying the originally borrowed amount have halted all payments and managed to negotiate a much lower resolution fee is this something that can be done?

You'll find them on the Debt Free Wannabe board and the Bankruptcy board after amassing a whole pile of Defaults, CCJ's etc...

TonyMMM

What was the term of the loan, and was there any ppi or other insurance included ?

7.79% was a pretty reasonable rate to get considering your missed payments.

Malky

Gaz2k21 wrote: »

Hi Guys,

Back on the 4th of August 2005 i took out a Graduates loan of £6000 with payments of £116.68 a month I kept this up quite well until I went traveling.
Unfortunately the post travel poverty got the better of me and I missed quite a few payments to the loan (2 or 3) I managed to get a job and barclays offered me a resolve loan of £7700 on the 5th of October 2007 this paid of the graduates loan and reduced my monthly payment to £113.07 with an annual interest rate of 7.79%. I've been paying this steadily ever since.

Due to some recent financial issues i started looking at how i can reduce my monthly outgoings and it seemed that alongside my car insurance (which is woefully high but coming down considerably in the next few months) this was one of my biggest outgoings (asside from ultra essentials like rent etc).

By my calculations I have paid £7979.88 of my loan to date which is more than the original amount borrowed...

I have heard that some people once paying the originally borrowed amount have halted all payments and managed to negotiate a much lower resolution fee is this something that can be done? I'm awaiting some paperwork from barclays so i can calculate the correct amount i have paid to Barclays for the loan so far but as it stands I apparently have £3349 still to pay which based on the interest rate will take me a further 4 and a half years or so to pay

Assuming you made the first payment in Nov 07 and you've made one this month, then that's 57 payments of 113.07. I make that to total 6444.99 and not 7979.88. As this wasn't an interest free loan I very much doubt you can just walk away from it because you claim you have paid back more than you borrowed, which you haven't.
Maybe you should change your priorities and ditch the car with costly insurance for a car with much cheaper insurance to free up some cash.

Gaz2k21

Malky wrote: »

Assuming you made the first payment in Nov 07 and you've made one this month, then that's 57 payments of 113.07. I make that to total 6444.99 and not 7979.88. As this wasn't an interest free loan I very much doubt you can just walk away from it because you claim you have paid back more than you borrowed, which you haven't.
Maybe you should change your priorities and ditch the car with costly insurance for a car with much cheaper insurance to free up some cash.

Sorry maybe i should be more clear i meant I've made £7979.88 worth off payments against both loans i realize that a percentage was paid to the first loan, what I've really got a hair up my !!! about is that when i took out the resolve it was explained to me as an extension on my graduates loan not a completely different loan.

My youthful foolishness and desperation seem to have stiffed me.....

CLAPTON

Gaz2k21 wrote: »

Sorry maybe i should be more clear i meant I've made £7979.88 worth off payments against both loans i realize that a percentage was paid to the first loan, what I've really got a hair up my !!! about is that when i took out the resolve it was explained to me as an extension on my graduates loan not a completely different loan.

My youthful foolishness and desperation seem to have stiffed me.....

why have you been stiffed?

to be given a 7.79% loan, given the circumstances was/is a very good rate.

the only problem here seems to be your unwillingness to manage your affairs appropriately and to learn the basics of how loans work

Malky

How many months was the original loan for and at what APR? How far was you into this loan before you borrowed £7700? How many months is your current loan spread over?

Gaz2k21

Malky wrote: »

How many months was the original loan for and at what APR? How far was you into this loan before you borrowed £7700? How many months is your current loan spread over?

The original loan was a 7 year agreement so it would have been ending around sometime this year. I'm not sure of the APR but I've requested paperwork from barclays for both loans so should know once I've received that. I was about a year and a half into my payments at the point of taking out the resolve loan.
I'm not sure how many years the agreement for the resolve loan was but again I've requested paperwork from barclays as well as statements for 10 years so that i can calculate just how much I've paid towards the loan so far.

By my calculations I've got a further 4 and a half years or so of payments before i pay this off

Bravehearted_2

Even if it was an extension as you say, it means you've still borrowed over 13grand and have paid back only 7grand.

How did you expect this to be covered?

Loans dont work out as "i've paid as much a i borrowed so i can stop"

The idea of a loan is that someone else (lender) is that much lighter for the term of the loan. Why do you think you shouldnt compensate them for that time period?