Natwest Consolidation Loan

Davidp77

Hi

Was hoping someone might be able to help!

My partner, about 5 years ago, consolidated all of her debts into one loan with her bank, Natwest. The loan was about £25k over 7 years, however after looking through all of her paperwork I noticed that the amount that she is actually paying back on top of the £25k is about £15k of interest.

We have got into a few difficulties recently and due to us having a child, my partner only works part time. Probably about 80% of her income now goes on paying this loan off. Despite us struggling she has always paid and never missed any payments on the loan. We don't want to default on the loan as this will not help us long term but we were wondering if typically if we wrote to the bank if they are likely as goodwill write some of the loan off?

She has paid the £25k back and a lot more but without this payment our lives would be a lot better. If we still had several years of the loan left, i wouldn't be asking this as we want to clear our debts, we just feel the amount of interest they are charging is too high?

Does anyone have any thoughts on how to approach the bank?

Many thanks

Dave

DCFC79

Davidp77 wrote: »

Hi

Was hoping someone might be able to help!

My partner, about 5 years ago, consolidated all of her debts into one loan with her bank, Natwest. The loan was about £25k over 7 years, however after looking through all of her paperwork I noticed that the amount that she is actually paying back on top of the £25k is about £15k of interest.

We have got into a few difficulties recently and due to us having a child, my partner only works part time. Probably about 80% of her income now goes on paying this loan off. Despite us struggling she has always paid and never missed any payments on the loan. We don't want to default on the loan as this will not help us long term but we were wondering if typically if we wrote to the bank if they are likely as goodwill write some of the loan off?

She has paid the £25k back and a lot more but without this payment our lives would be a lot better. If we still had several years of the loan left, i wouldn't be asking this as we want to clear our debts, we just feel the amount of interest they are charging is too high?

Does anyone have any thoughts on how to approach the bank?

Many thanks

Dave

Cant see why the bank would write some of the loan off.

Whats in it for the bank ?

[Deleted User]

Davidp77 wrote: »

We don't want to default on the loan as this will not help us long term but we were wondering if typically if we wrote to the bank if they are likely as goodwill write some of the loan off?

No. .

gb12345

Davidp77 wrote: »

we just feel the amount of interest they are charging is too high?

The interest was acceptable when your partner took out the loan, so what has changed now?

dotdash79

what's the interest rate on it?

What is the settlement amount?

could she get a super balance transfer credit card and pay off the loan?

Tixy

If she is struggling to afford repayments they may let her reschedule the loan, although that would likely cost even more in interest.

Alternatively she could consider trying to apply for a new loan elsewhere in the hope she could get a cheaper APR than the current loan (although if her income is very low then its unlikely a new loan company would approve her for a new loan now).

Davidp77

Look, I was only just seeing whether it was a possible option and whether anybody knew whether it was worth a try.

I don't really appreciate the sarcastic replies, I just thought as we have paid back the amount borrowed and already interest on top it may have been a possible option for us.

Thanks to the couple of threads who at least tried to offer a bit of friendly advice

Cycrow

Banks are in it to make money, not to be your friends

Apples2

Davidp77 wrote: »

I just thought as we have paid back the amount borrowed and already interest on top it may have been a possible option for us.

It isn't personal toward you. You are simply the latest poster suggesting the banks should be satisfied they have got the amount borrowed back.

If you look at it with a sensible head on instead of a desperate head, you would see how ridiculous the suggestion is.

Look for another product available which could shift this current debt into something else which will cost you less overall (without trying to ignore a chunk of it)

A loan is probably unlikely to happen, your partner spent a long time spending money she didn't have, it still must be repaid.
If she really can't, then call the debt charities and accept her credit file is likely to suffer.

I'm not sure that would be a bad thing, it would stop her repeatedly borrowing money she is unable to repay

TheMoney

Contrary to what other people may believe, the bank may actually help you. Your best option is always your own bank as they know everything about you, and if what you say is true and there hasn't ever been a missed payment, balance is always within authorised limits etc, then there is a very good chance they may offer you another loan at a lower rate to pay off the existing one.

[Deleted User]

TheMoney wrote: »

Contrary to what other people may believe, the bank may actually help you. Your best option is always your own bank as they know everything about you, and if what you say is true and there hasn't ever been a missed payment, balance is always within authorised limits etc, then there is a very good chance they may offer you another loan at a lower rate to pay off the existing one.

But that doesn't change anything.

Your still paying more back. (If your paying just the interest off, your then paying more interest on that)

If the OPs OH has lowered her income and has higher outgoings then, no the bank (including hers) will not offer her more money.

It's not a belief other people have, its knowledge. If the OP has paid over £15,000 in interest on a £25,000 loan, then obviously the credit history is poor. Purely paying that loan off will not remove that.