Needing some guidance on debt...

mermaid58_2

Hi all, my first time posting on here...a little nervous!

I have a bank loan which I've been paying off for a few years and it currently costs around £200 pm. The balance is around £8k. I got the loan as a young person and it escalated as I wasn't great with money, combined with credit card offers and a few consolidations from the bank. I've managed to pay off £4k over the years. I also have a £400 overdraft which I'm always in.

I've just finished my first year at university so am on a limited income (I have 2 jobs alongside studying) I'd never missed a payment until last Christmas, when I was struggling as my partner was made redundant. I went to the bank to ask for help but was told I wasn't eligible as I'd voluntarily gone back to study. I have since missed 2 further payments, but have managed to pay them back plus extra when my student loan has come in.

My only worry is that I am going to continue to damage my credit rating with the way I'm paying and I will continue to struggle for the next 4 years (the loan finalises 2017) and I'll be at uni for a further 2 years. So should I consider a Debt Relief Order or contact the CAB to offer lower repayments? Or do banks accept lump sum offers to finish a loan, which I could do with my student loan payment? I'm not sure on the best route, but I can't go on like this.

I don't want to give up my degree course as I'm finally doing something I love.

Any advice appreciated! Thank you

bargainbetty

Has your OH found another job? If so, has this freed up some funds towards the loan? You can probably make a big overpayment on the loan from your student loan, but would you then have enough to live on?

Do a statement of affairs for each option and look at the ways you can strip back to the bare minimum on things. Look at what you have that you can sell, and even consider taking on a third job, or your OH taking on extra work too. If you want to continue your study, you have to find a way to fund it. I'd love to go back to uni, but right now I can't afford it.

If you are in negative numbers every month, then you could consider a DMP, but that will wreck your credit for six years anyway.

I wish you the very best of luck

killerpeaty

Are you in receipt of student loan/maintenance? If you have been assessed (even if you aren't eligible) you will have access to the access to learning fubd. If you make an appointment with one of the uni team, they will be able to help you with applying to access to learning.

Apologies for the standard of writing, I'm on my phone.

mermaid58_2

Thank you, I do receive student loans and a maintenance grant, I've applied for everything I can and have been awarded some. My partner is back in work now so he can cover our living expenses etc.

I realise I've caused my situation by returning to study, but I decided to return to uni as I had a job offer which would've paid my expenses in full plus extra but that fell through at the last minute and so I've had to take on a retail position which isn't well paid. Giving up my course isn't an option.

I have considered using my student loan payment to pay off large chunks but I know I'd struggle to continue the monthly repayments as well. Perhaps I'll go and talk to the bank again and see if they'll accept a lump sum offer.

A third job isn't viable, as I have no spare time to work anywhere else, but I will definitely look at selling some items. Always good to have a clear out!

Thank you for your help, it's been useful :beer: