Im in a hole

annasf

I have a bank loan and the interest is 25% this is big. I work full time and have an overdraught of 3000 which I am sometimes over my overdraught. The loan and overdraught was because of a change in circumstance and I am trying to reduce my loan payments currently at 210 per month. with my charges on top for the overdraught etc. extra 30-40 a month. Any ideas on the best way forward. I intend on being debt free. I have never been in dept befor and I must say. I dont like it.x

randomnut

Honestly the best thing to do is speak to the bank/lender in the first instance and lay your concerns out for them and see how they can help.

Don't ignore it, speak to them, see what they have to say, and then weigh up your options.

25% is awfully high for a loan , what is your credit history like? it is almost certainly worth looking at refinancing your loan to another provider to one on a lower rate.

Additionally, it might be worth posting your statement of affairs so members can help you cut your outgoings so at a minimum it will be easier to meet repayments.

Tixy

Going over your overdraft limit will likely have been reported on your credit file and make it difficult to obtain any alternative credit.

How much can you actually afford a month towards these debts?
How much do you owe on the loan? or how long until it would be finished?

One option you could try speaking to the bank seeing if you can extend the term of the loan or add the overdraft balance to the loan.

Alternatively if they won't do that and you cannot afford the repayments you may need to consider opening a new account elsewhere and defaulting on the debts and then offering to set up a repayment plan based on what you can afford a month. This option would trash your credit file though.

CLAPTON

annasf wrote: »

I have a bank loan and the interest is 25% this is big. I work full time and have an overdraught of 3000 which I am sometimes over my overdraught. The loan and overdraught was because of a change in circumstance and I am trying to reduce my loan payments currently at 210 per month. with my charges on top for the overdraught etc. extra 30-40 a month. Any ideas on the best way forward. I intend on being debt free. I have never been in dept befor and I must say. I dont like it.x

impossible to give any advice without knowing the details of your income, your spending and your debts

post the full details on the debt free wannabe board; lots of support and help there from people in similar situation