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Loan in arrears

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Hi, I wonder if someone can help me? My Partner has got into arrears with his Yorkshire Bank loan. I have made an agreement to pay then £350 per month instead of £291.58 which is crippling us. In February the arrears stood at £991 and I paid the £350. when I rung up in March to pay last Friday, £350 was paid and I asked how much the arrears were - £1184!!! Apparently it's a daily interest loan which neither of us were aware of. I don't see how the arrears are going to go away. He took the loan out for £9000 last year and got into financial trouble last October before I met him. What's the options? Is it best him going bankrupt (not sure if you can for that amount?) or is it worth trying to reason with them or simply stop paying? Any help would be appreciated. Thanks:(

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  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Hi, I wonder if someone can help me? My Partner has got into arrears with his Yorkshire Bank loan. I have made an agreement to pay then £350 per month instead of £291.58 which is crippling us. In February the arrears stood at £991 and I paid the £350. when I rung up in March to pay last Friday, £350 was paid and I asked how much the arrears were - £1184!!! Apparently it's a daily interest loan which neither of us were aware of. I don't see how the arrears are going to go away. He took the loan out for £9000 last year and got into financial trouble last October before I met him. What's the options? Is it best him going bankrupt (not sure if you can for that amount?) or is it worth trying to reason with them or simply stop paying? Any help would be appreciated. Thanks:(

    If your in a financial mess you could completely Default the account where the debt will be then sold and you'll have a very good chance of all interest being frozen and you'd then be able to pay what you can only afford.
    BUT your credit files will be trashed for 6 years.
  • ILW
    ILW Posts: 18,333 Forumite
    Leave him, he's a loser.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    ILW wrote: »
    Leave him, he's a loser.

    Or that...
  • ILW wrote: »
    Leave him, he's a loser.

    Really? Offering [unrequested] relationship advice on a loans forum?

    OP, is the arrears figure before or after the £350 you paid at the time? I.e £1184-£350 = £834? Usually if you call up to make a manual payment, it will take a couple of days to process through the system. The arrears may include interest for March, but not the payment made.

    Call back in a few days and ask for a new figure on the arrears.
    Santander Loan [STRIKE]£3003[/STRIKE] £2100
    AA Credit Card [STRIKE]£3148[/STRIKE] £2676
    Natwest OD [STRIKE]£1500[/STRIKE] £1370
    Cahoot OD [STRIKE]£1000 [/STRIKE]£650
    Capital One Card [STRIKE]£641[/STRIKE] £400
    Total [STRIKE](Jan 12)[/STRIKE] [STRIKE]£9546 [/STRIKE] £7196 (Now)
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